The Centre for Policy Dialogue (CPD) revealed findings showcasing a 9.50% surge in monthly expenses for families following the recent power tariff hike in Bangladesh. CPD criticizes the government’s reliance on tariff increases instead of exploring alternative solutions, advocating for the phasing out of fossil fuel-based power plants and the adoption of a ‘no electricity, no payment’ mechanism. CPD estimates that by 2028-29, these measures could result in zero subsidies and a positive surplus for the Bangladesh Power Development Board (BPDB). Furthermore, CPD highlights the need for transparency in electricity pricing and calls for subsidy rationalization through cost reduction rather than tariff hikes. Despite capacity increases, electricity consumption growth remains stagnant, posing challenges for the government. The briefing followed the recent tariff hike announcement, which raised retail and bulk-level electricity tariffs.
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