Dhaka Electric Supply Company Limited (DESCO) has reported substantial losses due to a staggering surge in bulk electricity prices. In the first nine months of the fiscal year 2022-23, the company incurred a net loss of Tk 137 crore, compared to a profit of Tk 24 crore in the same period the previous year. The increase in bulk electricity prices by 19.92 percent, implemented by the Bangladesh Energy Regulatory Commission, has forced Desco to purchase electricity from the Bangladesh Power Development Board at higher costs. However, the company continues to supply electricity to retail users at the previously set lower prices. This pricing disparity has severely impacted Desco’s financial performance.
In the July-March period of FY23, the power supplier’s total operating revenue declined to Tk 295 crore, a significant drop from Tk 503 crore in the same period last fiscal year. The company reported a massive loss of Tk 144.43 crore in the January-March quarter of FY23, leading to a net loss of Tk 137 crore by the end of the third quarter. The financial report also indicated negative earnings per share of Tk 3.44 for the July-March period of the current fiscal year, compared to Tk 0.56 earnings per share in the corresponding period a year ago. Desco officials expressed concerns that if the situation continues, the company’s losses will continue to mount in the upcoming quarters.