Despite making profits, the Bangladesh Power Development Board (BPDB) and other power distribution companies submitted proposals to the Bangladesh Energy Regulatory Commission (BERC) to increase electricity prices. Following the proposal submitted by BPDB on Tuesday to increase the bulk tariff of electricity, a number of distribution companies also submitted proposals for fresh power price hikes.

Northern Electric Supply Company (NESCO) was the first to submit the proposal yesterday, followed by Dhaka Power Distribution Company (DPDC) and Dhaka Electric Supply Company Limited (DESCO). However, unlike BPDB, which mentioned a certain amount to offset losses, none of the other distribution companies specified any sums.

Reportedly, the price hike proposal is triggered by a desire to offset a huge deficit which will stand at Tk. 8608 crore in the next fiscal. The BERC earlier increased retail tariffs by 18.12 per cent in 2015 and by 5.3 per cent in November 2017. The government usually extends loans at 3 per cent interest to the power sector for development purposes every year. But this year, losses in the power sector are set to go up as the government is importing huge amounts of liquefied natural gas (LNG) for around USD 4 billion.

Raising electricity prices may be essential but the government needs to assess how this will impact the general power users of the country. There is no denying that the power situation has improved phenomenally in the past five years with load-shedding becoming a rare occurrence. Given that the people using power now get electricity round the clock, the new price hike may not be met with much opposition though any such move should be clearly explained to the masses.

Since Bangladesh is producing enough power now, a viable option may be to start exporting electricity to earn foreign currency. If this is done, the domestic power rates won’t have to be increased. Also, more emphasis needs to be given to solar power usage so many rural homes are able to harness the force of nature to meet their day to day power demands. The price hike may benefit the government since large industries will pay more but if solar panels are encouraged even within the towns and cities, a cheaper viable option will also be present.