Due to the devaluation of the rupee against the dollar, the Bangladesh Power Development Board (BPDB) faces an increase in electricity bill costs, leading to a surge in government subsidies. Officials from BPDB and the electricity department have acknowledged this issue. For every 1 taka devaluation against the dollar, the sector requires an additional subsidy of 473 crore 60 lakhs taka in the current fiscal year 2023-24. Bangladesh Bank data reveals that the average exchange rate of the dollar in the first 10 months of this fiscal year was approximately Tk 110, set to reach Tk 117 by year-end. This surge necessitates an increase in electricity subsidies by over 5,500 crore taka this fiscal year. Tariff agreements with private power plants are in dollars, resulting in extra expenses for BPDB due to the currency’s devaluation. The organization’s total financial loss over the past three years due to currency devaluation alone exceeds 2,163 crores.
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