Bangladesh cannot afford another electricity tariff hike without first confronting the deep structural failures within its power sector. The heated public response during the Bangladesh Energy Regulatory Commission's (BERC) recent hearing reflects a growing frustration among consumers, businesses and economists who believe ordinary citizens are repeatedly being asked to pay for policy inefficiencies they did not create.
The Bangladesh Power Development Board (BPDB) argues that it faces an enormous financial burden, with projected deficits of Tk 62,000 crore this fiscal year and Tk 65,000 crore next year. Rising global fuel prices, depreciation of the taka and dependence on imported energy have undoubtedly increased generation costs. BPDB officials also point out that despite idle diesel plants, heavy fuel oil-based plants remain necessary to ensure uninterrupted electricity supply. These are legitimate concerns that cannot simply be ignored.
However, the question remains: should the burden of these failures fall primarily on consumers and industries already struggling under inflationary pressure?
The answer is no.
Households across Bangladesh are grappling with rising food prices, transport costs and stagnant incomes. A fresh increase in electricity tariffs would directly raise living expenses and indirectly increase the prices of almost every essential commodity. For lower- and middle-income families, electricity is no longer a luxury but a basic necessity tied to education, healthcare and communication. Any price adjustment must therefore consider social realities, not just balance sheets.
The concerns raised by industrial leaders are equally serious. Bangladesh's export-oriented sectors, particularly garments and knitwear, are already facing declining competitiveness in global markets. Higher electricity costs would increase production expenses, discourage investment and weaken the country's position against regional competitors. At a time when export earnings are crucial for economic stability, policies that further strain industries could prove self-defeating.
Critics are also justified in questioning the transparency and efficiency of the power sector. For years, experts have warned about overcapacity, expensive quick-rental plants and excessive dependence on imported fossil fuels. BERC itself acknowledged that excess installed generation capacity is one of the reasons behind high electricity costs. Yet consumers continue to bear the consequences through repeated tariff adjustments while accountability for inefficiency remains limited.
Instead of relying on recurring price hikes, the government should prioritise comprehensive energy sector reforms. Reducing system losses, renegotiating costly power agreements, improving governance and accelerating investment in renewable energy particularly solar power would offer more sustainable long-term solutions. Bangladesh must move toward a power policy that balances financial sustainability with public welfare.
Electricity pricing cannot be treated solely as an accounting exercise. It is an economic and social issue that affects every citizen and every industry. Before imposing higher tariffs, the government must first demonstrate that every possible effort has been made to eliminate waste, improve efficiency and protect the public interest.
