The Foreign Investors' Chamber of Commerce and Industry (FICCI) has expressed grave concern over a proposed revision of gas tariffs by the Bangladesh Energy Regulatory Commission (BERC), calling for a more equitable and investment-friendly approach to energy pricing.
In a statement issued on Tuesday (15 April), FICCI cautioned that the newly proposed differentiated tariff model - which imposes higher rates on industries with new Gas Sales Agreements (GSAs), increased demand, or recent connections - threatens to deter both foreign and domestic investment, disrupt industrial competitiveness, and stall broader economic progress.
Under the proposed structure, firms within the same industrial category would face varying gas tariffs depending on the timing and nature of their supply agreements.
FICCI argues this would lead to an uneven playing field, injecting uncertainty into cost structures for companies looking to expand or enter the market.
"This model risks fragmenting the industrial sector by penalising new and growing businesses," the chamber said. It warned that such measures could undo recent progress in attracting foreign direct investment (FDI), particularly following the Bangladesh Investment Summit, which drew interest from nearly 50 countries.
Zaved Akhtar, president of FICCI, underscored the need for predictability and fairness in utility pricing.
"A transparent and equitable energy pricing framework is fundamental to sustaining investor confidence and industrial growth," Akhtar stated.
"While we understand the evolving demands of energy management, we urge BERC to revisit this approach and ensure policy changes align with national economic development and FDI attraction goals."
FICCI also flagged ambiguity around the treatment of new GSAs for existing customers, noting that such agreements are being treated as fresh connections under the current proposal - a move it warns could lead to arbitrary reclassification and operational disruption for long-standing industrial players.
The concerns echo sentiments raised during BERC’s public hearing on 26 February, where numerous industry stakeholders warned of the negative repercussions of the proposed tariff structure.
FICCI emphasised the importance of ongoing dialogue between regulators, the government, and the private sector to ensure that energy reforms bolster inclusive, competitive, and sustainable industrial growth.
Reaffirming its commitment to collaborate with the government on energy security and industrial resilience, the chamber called on BERC and the Ministry of Power, Energy and Mineral Resources to broaden consultations before implementing such transformative pricing shifts.
"We encourage greater collaboration to ensure energy pricing remains competitive, predictable, and conducive to long-term investment," FICCI concluded.
The business community now awaits a reconsideration of the proposal, hoping for a balanced resolution that safeguards both energy sustainability and economic expansion.
