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Power tariff to go up from February instead of March

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Published: 16:26, 29 February 2024

Update: 16:49, 29 February 2024

Power tariff to go up from February instead of March

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Power tariff will be increased from February 1 instead of March 1, said State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Thursday (29 Feb).

Gazette notification will be issued today regarding the power tariff adjustment, he said while briefing the reporters at his ministry.

Earlier he said the new tariff will come into effect from March 1.

He said the power tariff will be hiked between Tk 0.34 and Tk 0.70 per unit for all kinds of consumers depending on their volume of consumption while gas price will go up by Tk 0.75 per unit only for power plants.

He also said that dynamic fuel pricing will be introduced for the consumers from March 1 under which the price of petroleum fuel will go up and down in line with international market prices.

“Each month fuel price will be declared for the consumers”, he said adding neighboring India does this every day.

He noted that the steps have been taken to minimize the government losses caused by the increase in the dollar rate. “This year the government will incur a loss of Tk 43,000 crore due to the sale of electricity at a lower price,” he said.

This step has been taken as part of the government's move to come out of the subsidy now being given to the power sector, said the minister.

According to the Bangladesh Power Development Board (BPDB)’s Annual Report 2022-23, the fiscal year saw the production of 87,024 million kilowatt hours of electricity at a total cost of TK 98,646 crore.

Its per unit production cost was Tk 11.33, while it was selling electricity at Tk 6.7 per unit — suffering a loss of about Tk 4.63 per unit.

The annual report also shows that the BPDB’s average per unit production cost from its plants is Tk 7.63, while it is Tk 14.62 at the independent power producers or IPPs (private sector), at rental plants Tk 12.53, at public plants Tk 6.85, and imported power from India at Tk 8.77.

The government purchases electricity from the private sector and India in dollars.