Electricity price hike to put pressure on economy, consumers: CAB
The statement came after the Bangladesh Energy Regulatory Commission (BERC) announced new tariff adjustments
Households and businesses are to face higher costs, utility bills and renewed inflationary pressure following the latest electricity tariff hike, which is expected to ripple across industry, transport, agriculture and consumer spending, warns the Consumers Association of Bangladesh (CAB).
In a written statement sent to the media today (2 June), CAB Vice President SM Nazer Hossain said electricity and gas are the core drivers of the economy, and any increase in energy prices raises costs across all sectors, which, he warned, will drive up prices of goods and services, further fuelling inflation and eroding living standards.
Despite repeated calls to address mismanagement, irregularities, corruption, system losses and capacity charges, no action was taken, with the burden now being shifted onto small and marginal consumers
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The statement came after the Bangladesh Energy Regulatory Commission (BERC) announced new tariff adjustments, raising wholesale electricity prices by 19.85%, retail rates by an average of 16.68% and transmission charges by 23.96%. Depending on consumption slabs, retail tariffs have increased by 15% to 19.94%, with the new rates taking effect in June.
In his statement, Nazer said the recent increases in electricity, LPG, diesel, kerosene and furnace oil prices send a negative signal to both consumers and businesses, particularly as the BNP government has just assumed office.
He criticised the pricing mechanism, saying that despite repeated demands from CAB and other stakeholders to address inefficiencies such as system losses, capacity charges and irregularities, no corrective measures were taken, with the burden instead shifted to small and marginal consumers.
Nazer further argued that while some countries are waiving electricity bills for low-income groups or maintaining higher subsidies, reducing support for small consumers while raising tariffs is not justified. He also warned that inadequate progress in renewable energy adoption could create long-term structural risks for the economy.
Highlighting widening disparities in electricity distribution between urban and rural areas, he said that rural communities are increasingly frustrated due to inconsistent supply. Although the Rural Electrification Board is responsible for around 80% of distribution, he said operational inefficiencies and capacity constraints are undermining the government's goal of achieving universal electrification
