Nasrul Hamid, the state minister for power, energy, and mineral resources, has suggested a 'slight' tariff hike of up to 4 per cent for both bulk and retail consumers.
The last revision to power tariffs took place in March 2023, with a 5 per cent increase as part of routine adjustments, resulting in a weighted average electricity price of Taka 8.24 per unit.
Recent discussions at the power ministry have focused on preparing for another hike, with a proposal for the adjustment tabled during a meeting.
Explaining the rationale behind the tariff adjustment, Nasrul stated that the government is compelled to increase prices due to the failure of its strategy to reduce production costs by utilising cheaper coal, which was thwarted by the surge in the dollar’s value.
This rise in production expenses necessitated a slight adjustment in electricity prices.
The dollar’s exchange rate has surged from Taka 75, when the government sanctioned several coal-fired power plants, to the current range of Taka 110 to Taka 115, accompanied by fluctuations in coal prices.
The minister assured that the planned hike would not adversely affect essential consumers, emphasising the government’s commitment to minimising its impact on those who rely heavily on electricity.
ALCHEMPro News Desk (DR)
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