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Thursday, 18 April, 2024

Bangladesh to raise electricity prices in March, a year after last hike

State Minister Nasrul Hamid has hinted at raising the tariff ‘slightly’ by up to 4 percent at both bulk and retail levels
Express Report
  21 Feb 2024, 03:30

The government is raising electricity prices in March, a year after the last hike, to tackle the pressure of the taka’s devaluation against the dollar.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has hinted at raising the tariff “slightly” by up to 4 percent at both bulk and retail levels.

Power prices were raised for the last time in March 2023 by 5 percent as part of a routine readjustment. The weighted average of electricity price stood at Tk 8.24 per unit after that hike.

Officials have sat at the power ministry recently to prepare for another hike. A proposal on the hike was made in the meeting.

Asked about the steps to raise power tariff, Nasrul said on Tuesday that the government will have to raise the price because its plan to lower the cost of production by burning cheaper fuel coal did not work because of a rise in dollar price.

“As a result, the cost of power production has increased. Now we are forced to raise the prices slightly,” he said.

The exchange rate of the dollar was Tk 75 when the government approved several coal-fired power plants. Now the dollar is priced between Tk 110 and Tk 115. Coal prices are also fluctuating.

Nasrul said a power price hike at the rate planned by the government will not affect lifeline customers.

“We will finalise the decision in such a way that its effects will be limited within the customers who use power the most,” he said.

Comments

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Bangladesh to raise electricity prices in March, a year after last hike

State Minister Nasrul Hamid has hinted at raising the tariff ‘slightly’ by up to 4 percent at both bulk and retail levels
Express Report
  21 Feb 2024, 03:30

The government is raising electricity prices in March, a year after the last hike, to tackle the pressure of the taka’s devaluation against the dollar.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid has hinted at raising the tariff “slightly” by up to 4 percent at both bulk and retail levels.

Power prices were raised for the last time in March 2023 by 5 percent as part of a routine readjustment. The weighted average of electricity price stood at Tk 8.24 per unit after that hike.

Officials have sat at the power ministry recently to prepare for another hike. A proposal on the hike was made in the meeting.

Asked about the steps to raise power tariff, Nasrul said on Tuesday that the government will have to raise the price because its plan to lower the cost of production by burning cheaper fuel coal did not work because of a rise in dollar price.

“As a result, the cost of power production has increased. Now we are forced to raise the prices slightly,” he said.

The exchange rate of the dollar was Tk 75 when the government approved several coal-fired power plants. Now the dollar is priced between Tk 110 and Tk 115. Coal prices are also fluctuating.

Nasrul said a power price hike at the rate planned by the government will not affect lifeline customers.

“We will finalise the decision in such a way that its effects will be limited within the customers who use power the most,” he said.

Comments

IFIC Bank sponsors USA's Bangla Noboborsho 1431 Festival
IMF further trims Bangladesh’s GDP growth forecast for FY24 to 5.7%
Airlines suspend flights due to Middle East tensions
Azeeza Khan joins rank of Young Global Leader 2024
Oil prices lower after Iran attack on Israel