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Power costs rise again

Industry: Power
Industry Intelligence Tag: Industry insights, Regulatory Insights

The government raised power costs once again after increasing the price 18 days ago, which came as a shock to citizens already dealing with increasing inflation and commodities prices. On Tuesday, the latest hike was announced by the Ministry of Power, Energy, and Mineral Resources. They issued an executive order increasing the retail and bulk power rates by 5% and 8%, respectively. The new tariffs are going into action right now. The average retail price of power this month will be Tk 7.85 per unit as a result of the increases. The frequent and unprecedented increases in energy prices have been expressed concern by energy experts, consumers, and the business community. Consumers in particular worry that their misery may get worse. According to specialists. Retail electricity rates have grown 12 times in 14 years, while wholesale rates have increased 10 times.

The continual increases in energy prices will affect revenue collection. Consumption and state spending decline as prices rise. Tax collection and VAT would also be affected. The minimum power cost for lifeline customers has been raised from Tk 3.94 to Tk 4.14 per unit. The maximum price, which is applicable to short-term business usage, would increase by 0.84 to 17.64 Tk. Pumps used in irrigation systems or agricultural operations will now cost Tk 4.59 per unit, an increase of Tk 0.12. Previously Tk 8.96, the flat fee for small-scale industries is now Tk 9.41 per unit. While the peak-hour cost would increase from Tk 10.75 to Tk 11.29, the off-peak pricing has been set at Tk 8.46 per unit. Customers who fall into the categories of medium, high, and ultra-high pressure will have to pay extra per unit. A higher flat fee of Tk 9.31 per unit, an off-peak rate of Tk 8.39, and a peak-hour rate of Tk 11.64 will be charged to high-pressure industrial users.

 

 

Source for more details:

The Business Post

The Daily Sun

NEWAGE

 

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