Bangladesh has initiated the process of increasing electricity prices at both wholesale and retail levels. Power generation and distribution companies have submitted proposals to the Bangladesh Energy Regulatory Commission (BERC), which began a two-day public hearing in Dhaka on Wednesday. The proposals suggest raising wholesale rates by 17 to 21 percent and retail rates by 14.21 to 17.76 percent. Distribution companies aim to implement the new rates from early June, pending final approval.

According to the Power Division, the government currently incurs a loss of about five taka per unit of electricity, with production costs exceeding 12 taka per unit while the average selling price remains just over seven taka. Despite a subsidy of 38,637 crore taka in fiscal year 2024–25, the sector still recorded a loss of 17,021 crore taka. The government seeks to reduce subsidies by 10,000 to 16,000 crore taka through the proposed price adjustments. Experts have criticized the move, linking it to long-standing mismanagement and corruption in the sector.

The Power Development Board has also proposed revising the consumer slab structure to reduce subsidies for wealthier users while protecting low-income households.