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distribution utilities, seeking electricity price increases of between 17 and 21 percent.

The regulator yesterday announced two separate public hearings on bulk and retail electricity prices on May 20 and May 21, respectively, at the Krishibid Institution Bangladesh Auditorium in Dhaka.

BERC has asked those interested in participating to register by May 17.

The move comes as the power sector is battling mounting financial pressure from capacity payments for underutilised plants, higher import costs of primary fuels, and inefficiencies in the gas transmission and distribution system.

The proposed tariff adjustments aim to narrow the widening gap between electricity generation costs and existing consumer-end tariffs, which have increasingly been distorted by rising input costs and subsidy dependence, according to power sector insiders.

The technical committee will scrutinise all cost components and determine whether the proposed adjustments are justified, said BERC Chairman Jalal Ahmed.

According to the PDB proposal, the wholesale electricity prices may rise by Tk 1.2 to Tk 1.5 per kilowatt-hour (kWh), while retail tariffs would increase proportionately.

Currently, PDB sells electricity at Tk 7.04 per kWh at the wholesale level, while the average retail tariff stands at Tk 8.95 per kWh.

Distribution utilities have proposed similar proportional increases, Jalal said.

“I have not seen the retail-level proposals in detail. But I have reviewed the main PDB proposal. It includes a ratio-based adjustment between wholesale and retail tariffs. It appears that the distributors have proposed similar structures,” he said.

If approved, this would mark the first major electricity tariff revision under the current government.

Retail tariffs could rise at varying rates depending on consumption levels, with higher consumption brackets likely to face steeper increases, said energy sector officials.

Transmission companies have also proposed raising wheeling charges, potentially adding another layer of cost escalation.

The move marks a significant policy reversal.

Following the ouster of the Awami League government, both the interim administration and the current elected government had pledged not to raise electricity prices, instead promising to cut unnecessary and excessive costs in the sector.

In January this year, a national committee, formed by the interim government to review unsolicited power contracts signed during the Awami League regime, found that inflated capacity charges had been costing Bangladesh up to $1.5 billion annually.

The committee warned that unless contracts involving at least 41 power plants are renegotiated, the country could face about $7.2 billion in excess payments over the remaining lifespan of the deals.

Following the findings, the government initiated efforts to renegotiate several power purchase agreements.

On February 26, Minister for Power, Energy, and Mineral Resources Iqbal Hassan Mahmood Tuku also announced that electricity prices would not be increased for at least two years, with efforts instead focused on reducing generation costs and system losses.

However, officials say the Middle East war that began on February 28 has since disrupted fuel supply chains and sharply increased the import costs of LNG, coal, and furnace oil -- all key inputs for electricity generation.

PDB Chairman Rezaul Karim told The Daily Star that tariff adjustment alone cannot address the overall deficit in the sector.

“We are working on several measures simultaneously. Some are already being implemented, while others are in the pipeline.”

At the same time, groundwork is being done on multiple fronts to reduce costs, including reviewing power purchase agreements and improving efficiency.

“These are running in parallel,” he said.

M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), sharply criticised the proposed tariff hike, saying the government continues to protect inefficiencies and unjustified expenditures instead of addressing structural weaknesses.

“We have been saying for a long time, both before and after the fall of the previous government, that this sector has witnessed extensive plundering through inflated costs and excessive profits.”

Calling the public hearing process ineffective, he said CAB would boycott the upcoming hearings.

“There is no possibility of our participation,” he said, adding that the BERC simply raises prices based on the costs placed before it.

It does not independently examine whether those costs are justified, he added.