Bangladesh Energy Regulatory Commission (BERC) has recommended the hike of retail power by 0.93 Paisa, which at present costs TK 4.87 per unit on average. If the distribution charge is added then the price will rise further.  Power may cost Tk 7.26 per unit.

Commission chairman Monowar Islam said at the hearing: “The condition of distribution companies is better than before but the interest of the consumers needs to be taken into account.”

A zero-tolerance policy has to be adopted to deal with the corruption within institutions. After a thorough assessment in the next 90 days, the commission will make a decision on price. Analyzing power rates it becomes clear that in the past, in most cases rates increased following a hearing.

The last hike occurred in 2017 when the per-unit price rose by 5.3 percent.

Whether the price will be raised or not depends on government subsidy. If half the cost is subsidized at the production stage, then the price rise will occur for the other half.

The BERC'S technical evaluation committee has said that to tackle the deficit, 0.93 Paisa will have to be increased per unit. Leaving the subsidy undisturbed, the rest can be taken from the subscriber.

Energy specialist Shamsul Alam said: “The PDB could not present a rationale for the price hike. For good reasons, raising the price will not be judicious. Once the government gives subsidy we will be able to determine the actual rise in price.”