Electricity prices to jump up to 70 paisa per unit from March

The government is set to raise electricity prices by 34 to 70 paisa per unit, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said today (27 February).

The new rate will come into effect from the first week of March.

"The price adjustment was aimed at balancing the cost of electricity production," he said during a media interaction this morning at the secretariat in Dhaka.

According to the state minister, those who consume up to 50 units will see a price hike of 34 paisa per unit. For those consuming above 50 units, the increase will range from 34 to 70 paisa.

The government increased electricity prices in the country three times last year by 15%.

Meanwhile, fossil fuel prices will be adjusted as well.

Addressing this, Nasrul Hamid said, "If prices rise in the international market, domestic prices will increase accordingly. Similarly, if prices decrease in the international market, fuel prices here shall too go down. This synchronisation will also be effective from the first week of March."

Additionally, the price of gas used in electricity production has been raised by 75 paisa per unit. As for industrial activity and residential fuel consumption, the prices will remain unchanged.

The state minister explained the price adjustment, stating, "Due to the increase in coal and dollar prices, the cost of electricity is being raised. These prices will be effective from the first week of March. The plan is to adjust electricity subsidies over the next three years. 

The government currently provides Tk43,000 crore in subsidies annually for electricity and Tk6,000 crore for gas, he noted.

State Minister Nasrul Hamid said a notification in this regard will be issued soon to clarify the price adjustments.