Ficci, EuroCham concerned over new gas tariff structure

The Foreign Investors' Chamber of Commerce and Industry (Ficci) and the European Union Chamber of Commerce in Bangladesh (EuroCham) have expressed concerns over the Bangladesh Energy Regulatory Commission's (Berc) recently proposed gas tariff structure, which differentiates between new, committed, and existing customers within the same industrial category.

In a statement issued today, the Ficci said the newly announced tariff mechanism risks creating unintended barriers for new and expanding industries. 

Under the current proposal, businesses with new gas sales agreements, increased demand, or recent connections will face significantly higher tariffs compared to existing customers — even within the same industrial classification.

The Ficci said this differentiated pricing model presents several challenges. It introduces inequity in energy costs across similar operations, undermines the principle of a level playing field, and could adversely affect Bangladesh's industrial competitiveness at a time when investment momentum is building, said the trade organisation. 

"Importantly, it may disincentivise new foreign and domestic investments at a critical juncture, just as the government is proactively engaging the global investor community through initiatives such as the recent Investment Summit, which drew participation from nearly 50 countries," reads the statement.

Zaved Akhtar, president of the Ficci, said: "A transparent and equitable energy pricing framework is fundamental to sustaining investor confidence and industrial growth. While we understand the evolving demands of energy management, we urge the Berc to revisit this approach and ensure that policy changes align with the broader goals of economic development and FDI attraction."

In a separate statement yesterday, the EuroCham warned that the differential tariff mechanism — based on industrial consumers' contractual timelines and gas connection status — could inadvertently hurt investor sentiment and industrial growth.

"Fragmented energy costs across similar operations may erode Bangladesh's competitive edge and discourage both foreign and domestic investment," said EuroCham, pointing out that the proposed structure comes at a time when Bangladesh is actively courting global investors.

Nuria Lopez, chairperson of EuroCham Bangladesh, emphasised the importance of a stable policy environment in attracting and retaining European investors.

"Maintaining a predictable and balanced energy tariff regime is essential for ensuring investor confidence and supporting industrial expansion," Lopez said. "We believe a collaborative approach to policy design can help avoid business disruptions and send a positive signal to potential investors."

Echoing the concerns voiced by industry stakeholders during Berc's recent public hearing the EuroCham said it supports calls for a more inclusive, consultative reform process.

The chamber said the Berc should engage more deeply with both foreign and domestic stakeholders when crafting energy policies that impact long-term business planning.

"Energy pricing must align with Bangladesh's broader goals of industrial resilience, energy security, and sustainable development," the chamber noted.