Bangladesh raises electricity price to reduce losses

The price of electricity in Bangladesh will rise about 6.5 percent from Monday to reduce losses by a state-run power utility, a senior energy official said on Sunday. "The increase has been approved by Bangladesh Energy Regulatory Commission and will take effect on August 1," said Mohammad Saiful Islam, a director of the Bangladesh Power Development Board (BPDB).
Bulk users will pay 2.80 taka per unit against 2.63, the official added. Bangladesh suffers from chronic electricity shortages of up to 2,000 megawatt per day, constraining growth and blamed by economists for keeping investors at bay.
The BPDB, which posted a loss of nearly $541 million in the fiscal year to June, 2011, lifted electricity tariffs in February by more than 11 percent for bulk users and 5.0 percent for retail consumers.
The bulk price will be paid by power distribution agencies like Dhaka Electric Supply Company and Bangladesh Rural Electric Board which buy from the BPDB for their retail consumers.