FICCI Calls for Equitable Energy Tariff Framework

The Foreign Investors' Chamber of Commerce and Industry (FICCI) expresses concern over the recent announcement by the Bangladesh Energy Regulatory Commission (BERC) introducing a revised gas tariff structure that differentiates between new, committed, and existing customers within the same industrial category.

While FICCI fully supports the government's objective of ensuring a sustainable and reliable energy supply, the newly announced tariff mechanism risks creating unintended barriers for new and expanding industries. Under the current proposal, businesses with new Gas Sales Agreements (GSAs), increased demand, or recent connections will face significantly higher tariffs than existing customers, even within the same industrial classification.

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. Importantly, it may disincentivise new foreign and domestic investments at a critical juncture, just as the government proactively engages the global investor community through initiatives such as the recent Investment Summit, which drew participation from nearly 50 countries.
"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 BERC to revisit this approach and ensure that policy changes align with the broader goals of economic development and FDI attraction."

FICCI further notes that the provision to treat any new Gas Sales Agreement as a new connection—even for long-standing industrial users—introduces ambiguity and could lead to arbitrary reclassification. This could inadvertently disrupt existing business continuity and create administrative and operational uncertainty. New Gas Sales Agreements with existing customers should not fall under the tariff for new connections. 

During the public hearing held on February 26, 2025, industry stakeholders collectively expressed strong reservations about the proposed tariff structure. FICCI emphasises the importance of continuing dialogue with all relevant stakeholders, including foreign and domestic investors, to ensure that energy reforms support inclusive and sustainable industrial growth.

FICCI remains committed to partnering with the government to achieve energy security and industrial resilience. We encourage BERC and the Ministry of Power, Energy, and Mineral Resources to collaborate further to ensure energy pricing remains competitive, predictable, and conducive to long-term investment.