Electricity generation in Bangladesh is based on four sources, gas, oil, coal and hydropower. But gas was the main source of electricity in Bangladesh. Gas reserve is shrinking and stetting a big power plant needs some time. In this situation the government decided to go for quick rental oil based power plants. Oil is very expensive compared to gas, so the government needs to subsidize huge amount of money for power generation.
Power generation companies have been arguing for increase in power price for the sixth time in this government’s tenure. They wanted 57percet hike. But after long discussion and hearing between consumer representative and power company representative the energy regulatory commission decided a 15 percent hike in power price at consumer level.
They also decided to abandon geometric billing rate. This will prevent sharp increase of electricity bill. Energy regulatory commission also said it will not increase the tariff in next one year unless petroleum price in international market is hiked. Moreover it may reduce the power price if petroleum price is decreased.