Two power distribution companies have formally petitioned the Bangladesh Energy Regulatory Commission (BERC) to adjust wholesale electricity tariffs at the 33kV level, seeking parity with rates offered to other distributors in an effort to reduce persistent losses.
Brigadier General (Retd.) Shahid Sarwar, BERC member (Power), confirmed the receipt of the written applications from Dhaka Electric Supply Company Limited (DESCO) and West Zone Power Distribution Company Limited (WZPDCL).
Both DESCO, responsible for electricity distribution in northern Dhaka, and WZPDCL, serving the Khulna and Barishal regions, are pressing for wholesale electricity rates to be aligned with those granted to Dhaka Power Distribution Company (DPDC) and Northern Electricity Supply Company (NESCO), respectively.
They argue that the nature and profile of their customer bases are identical, warranting equal pricing.
The companies cited sustained financial losses in their appeals. DESCO reported a net loss of Tk505 crore 56 lakh in the last financial year, while WZPDCL recorded a net loss of Tk208 crore.
A disparity in wholesale electricity rates has persisted since 2017, arising from BERC’s decision to differentiate prices based on revenue demands and developmental considerations of the distribution companies.
DPDC, at the time lagging in performance, received a slightly lower rate, while the newly-formed NESCO was granted favourable terms to support its self-sufficiency drive.
Although prices have been revised periodically, the discrepancies have remained.
Currently, DESCO pays approximately 0.03 taka more per unit at the 33kV level compared to DPDC—8.5880 taka versus 8.5600 taka.
Meanwhile, WZPDCL pays 0.41 taka more per unit than NESCO—7.46 taka compared to 7.04 taka.
Mohammad Haidar Ali, acting managing director of WZPDCL, said that although WZPDCL and NESCO serve similar customer profiles, the wholesale tariff burden is heavier on WZPDCL.
He further pointed out that under the latest executive order in 2024, WZPDCL must pay more than NESCO despite earlier decisions in 2020 setting NESCO’s rate at 5.05 taka per unit and WZPDCL’s at 5.37 taka.
Haidar Ali added that due to a net loss of Tk208 crore in the past fiscal year, WZPDCL has formally requested BERC to standardise its wholesale rates with NESCO's.
However, BERC has clarified that tariffs cannot be altered without a public hearing, and no formal application for a hearing has yet been submitted by the company.
Meanwhile, the Bangladesh Power Development Board (BPDB) had previously proposed raising its wholesale rate by 66% from Tk5.17 to Tk8.58 per unit.
Following a public hearing in May 2022, BERC rejected the proposal in October but later, upon review, allowed a 19.92% increase, setting the new wholesale rate at Tk6.20 per unit.
After the wholesale rate adjustment, distribution companies filed applications to increase retail electricity prices. BERC held a public hearing on 8 January 2023, setting 15 January as the deadline for written opinions.
However, under governmental pressure, the retail price was raised by 5% via executive order on 12 January, ahead of BERC’s final ruling.
A second round of wholesale and retail price hikes followed in February, also through executive orders.
Since then, distribution companies have consistently argued that retail tariffs have not been raised proportionately to the two rounds of wholesale price increases—19.92% and 5%—forcing them into sustained financial losses.
They continue to urge the authorities for further tariff adjustments to reflect the true cost of electricity.
