State-owned Power Development Board (PDB) has submitted a proposal to the Bangladesh Energy Regulatory Commission (BERC) seeking a hike in the bulk tariff of electricity.
According to official sources, the PDB has appealed to the regulatory body to raise the bulk power tariff to Tk 5.51 per kilowatt hour (each unit) from the existing rate of Tk 4.70 per unit.
The proposal, sent recently to the BERC, also urged the watchdog body to give effect to the proposed hike from January next year.
It said that if the bulk power tariff is not raised, the government subsidy to the power sector will go up to Tk 7000 crore. But once the bulk power tariff is raised, the subsidy will come down to Tk 4000 crore.
Official sources said that the PDB would have to incur a loss of Tk 1.85 per unit as the electricity is being sold to distribution companies and other bulk consumers at Tk 4.70 per unit while the production cost is Tk 6.54 per unit.
The BERC raised the power tariff by 6.96 percent at the retail consumer level on March 13 this year giving effect from March 1.
BERC officials said after examining the proposal of the PDB on bulk power tariff hike, the regulatory body will hold open discussion and public hearing.
The law dictates that such proposal for power tariff hike be resolved within 90 days from its receipt.
After assuming office, the Awami League government raised power tariff in retail and bulk on six occasions since 2009.
PDB proposes BERC to raise bulk power tariff