The Bangladesh Power Development Board (BPDB) and six distribution companies proposed steep increases in electricity tariffs at a public hearing at the Krishibid Institution Bangladesh (KIB) auditorium in Dhaka on Wednesday, blaming years of losses, rising fuel costs and shrinking subsidies. BPDB sought a 17 to 21 percent wholesale price rise that would push the unit rate up by as much as BDT 1.50. The distribution companies requested retail tariff hikes of 15 to 29 percent for different consumer categories.

The proposals drew fierce opposition from industrialists, traders, consumer rights groups and ordinary citizens. Many warned that the Bangladesh Energy Regulatory Commission (BERC) would become a “public enemy” if it approved the increases. Some alleged that tariffs had been repeatedly raised through such hearings under the guise of adjustment.

Opponents accused the power sector of shifting the cost of its inefficiency and management failures onto the public. They pointed out that fuel oil, gas and other energy price rises had already driven up the cost of living. A further increase in electricity prices, they warned, would inflate production costs and hit industry and commerce, potentially eroding the export competitiveness of domestic factories. It would also impose fresh financial pressure on households and weaken the broader economy.

BPDB is the country’s sole buyer of electricity, purchasing from state, private and joint-venture plants and supplying to distribution companies. It also imports electricity from India and Nepal. The board, however, runs a large annual deficit in its purchase and supply operations. Despite government subsidies, it has long failed to escape a cycle of losses. Sector experts attribute the crisis to structural problems, poor planning and ineffective electricity procurement policies.

The proposal BPDB submitted to BERC shows the government currently provides a subsidy of roughly BDT 5.47 per unit of electricity. Total generation cost in the 2026–27 fiscal year could climb to about BDT 1.43 trillion, pushing the average per-unit cost to around BDT 12.91. BERC’s Technical Evaluation Committee, however, puts the likely generation cost at BDT 1.26 trillion. Under the existing tariff structure, projected revenue stands at BDT 775.53 billion, leaving a deficit of approximately BDT 655.55 billion.

BPDB’s average cost per kilowatt-hour to purchase electricity from various fuel-based plants in FY 2024–25 was BDT 11.83. The estimated cost for the current 2025–26 year rises to BDT 12.03, and the forecast for 2026–27 reaches BDT 12.53. The board’s bulk tariff has been fixed at BDT 7.04 since February 2024.

BPDB proposed the revision citing rising generation costs and global fuel prices, and the existing bulk tariff leaving a shortfall. It wants BERC to approve an increase of 17 to 21 percent.

Speaking on the first day of the two-day hearing, BPDB Chairman Md Rezaul Karim said: “Over the past two years and more, fuel oil, gas and coal prices for power generation have risen sharply. Government and private generation companies must import the bulk of their fuel, often paying in dollars. The dollar’s appreciation and higher international fuel prices have driven up generation costs considerably.” Tariffs were last set in February 2024 and had not risen since, he noted. “This proposal isn’t intended to bring the entire sector to break-even, but to offset a portion of the enormous subsidy.”

BPDB puts the sector’s current shortfall at nearly BDT 650 billion, while BERC estimates it at about BDT 620 billion. The chairman argued that the proposed adjustment might trim one-fifth to one-quarter of the total subsidy, leaving the government to bear the remainder.

Addressing the hearing, Karim said BPDB also absorbed the cost of transmission losses, adding that the board had calculated the actual system loss at 3.07 percent while BERC’s technical committee assumed 2.7 percent. “People have grown accustomed to uninterrupted power. If fuel supplies to power plants can’t be secured, generation could be severely disrupted. It’s also difficult for the government to sustain such massive subsidies each year,” he said, adding that the price proposal was intended to create a “check and balance.”

Dr Syed Mizanur Rahman, organising secretary of the Consumers Association of Bangladesh, warned that BERC would become a “public enemy” if it allowed the increase. “It’s repeatedly said the government must provide subsidies. But the government gives that money from the people’s own pockets. Everyone is concerned about profit but no one is thinking about public suffering.”

BPDB has proposed raising the bulk tariff by up to 21 percent. The technical committee noted that the per-unit deficit in FY 2026–27 would be BDT 5.47, a gap that would require an average rise of 77.78 percent to close. Tariffs could instead be set by continuing to factor in government subsidies, it said. BPDB’s deficit at current prices could reach roughly BDT 603.99 billion, against an estimated BDT 568.68 billion for the current fiscal year.

Industrialists also opposed the tariff rise. Md Jamal Uddin Mia, a director of the Bangladesh Knitwear Manufacturers and Exporters Association, said: “Exports are already in decline. If tariffs go up, the industrial sector will lose its competitive edge in global markets.” Bangladesh was once second only to China in garment exports, he noted, but that position was steadily weakening. “There’s simply no room for an increase in power tariffs.”

Ruhin Hossain Prince, former general secretary of the Communist Party of Bangladesh, told the hearing that a price rise would inflate factory production costs and create a dire situation. BPDB’s recommendation had ignored the public interest, he said, and called for the hearing to be scrapped.

BERC Chairman Jalal Ahmed said the current electricity policy needed changes and the government was working on them. “BPDB’s mindset must shift too, particularly the conventional thinking of its engineers. The global electricity generation model is changing fast.”

Many European countries had already moved to 100 percent renewable-based systems, the BERC chairman said, and renewables supplied about half the EU’s total power. In India, solar alone accounted for more than 20 percent and wind over 10 percent. Pakistan sourced more than 30 percent from solar.

At the public hearing, Power Grid Bangladesh PLC proposed raising transmission charges to BDT 0.48–0.49. The country’s sole power transmission operator currently charges BDT 0.30-0.31. The company has posted net losses for three consecutive fiscal years. Its domestic and foreign debt now stands at roughly BDT 600 billion. In its BERC submission, it said that without an increase, its operations, debt servicing and transmission network would be at risk.