The state-run Power Development Board has submitted a proposal to the Bangladesh Energy Regulatory Commission to raise the bulk price of electricity by 15 per cent, up to Tk 5.59 from Tk 4.87 per kilowatt-hour or unit, to achieve its break-even target.
The commission received the proposal on February 23, when it raised the prices of natural gas by 22.7 per cent on an average, officials said.
The power board proposed the hike in bulk price of electricity with effect from April 1 to offset its deficit of Tk 3,500 crore per annum.
The power board is preparing a proposal for raising the retail prices of electricity as a reflection of the proposed bulk price hike.
Other power distribution utilities would also submit their proposals for adjusting the retail prices with the bulk price hike, he said.
The commission official told that the power board’s proposal for bulk power price hike was under primary examination.
The commission would need two to three weeks to decide whether it would fix
a date for public hearing on the proposal, he said.
The power board official said that the board spent Tk 5.59 per unit for generation and purchase from other utilities in public and private sectors while it sold the power to the power distribution utilities at Tk 4.87 per unit, set by the commission with effect from September 1, 2015.
The energy commission raised the price of bulk electricity by 3.62 per cent, up from Tk 4.70 per unit to Tk 4.87 per unit, with effect from September 1, 2015.
At the same time, the commission increased the retail prices of electricity by 3.62 per cent, up from Tk 6.10 per unit to Tk 6.33 per unit.
Experts said that no hike in power prices would be required had the government reduced the prices of furnace oil and diesel in the local market in line with the international market.