Government will increase electricity prices from March to deal with subsidy pressure

Government will increase electricity prices from March to deal with subsidy pressure

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The government has decided to increase the price of electricity, saying that the price is being adjusted to deal with the pressure of subsidy.

In the first phase, electricity prices will increase from March.

State Power, Energy and Minerals Minister Nasrul Hamid told reporters that in the first phase, the price of electricity may increase by 34 to 70 paise per unit.

The price of electricity is below the cost of production, he argued, adding that the price of electricity is being adjusted to meet the deficit.

The price of electricity will be adjusted in phases for the next three years.

The government increased the price of electricity by 5 percent every month from January to March last year. Since then the electricity prices have remained the same.

Despite the price hike, the Power Development Board (PDB) suffered a loss of Tk 435.39 billion in financial year 2022-23. The government had to give subsidy of 395.34 billion taka.

PDB officials are saying that the wholesale price of electricity is now at an average of Tk 6.70 per unit.

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