The Consumers Association of Bangladesh (CAB) on Wednesday expressed concern over the latest increase in electricity tariff, warning that the move could intensify inflationary pressures and raise the cost of living for ordinary people while increasing production costs across key sectors of the economy.
Reacting to the price hike, CAB Vice President SM Nazer Hossain said energy, including electricity and gas, is a fundamental driver of economic activity, and any increase in energy prices inevitably has widespread consequences.
“We have repeatedly said that electricity, gas and other forms of energy are the backbone of the economy. When energy prices increase, economic activities are naturally affected. The impact is felt not only in households but also in industries, agriculture, transport and other productive sectors,” he said.
According to the CAB, higher energy costs increase production expenses, which are ultimately passed on to consumers, affecting people from all walks of life and potentially fuelling inflation.
It said the tariff increase comes shortly after the new government assumed office, sending negative signal to consumers as well as those involved in industry, trade and commerce.
The CAB also criticised the process through which the electricity tariff was raised, noting that CAB and other stakeholders had repeatedly urged the authorities to address inefficiencies, irregularities, corruption, system losses and capacity charge-related issues before imposing additional burdens on consumers.
“Instead of taking effective measures to resolve these long-standing problems, the burden has once again been shifted onto small and marginal consumers. This is very unfortunate,” Nazer said.
He argued that while many countries are considering subsidies or bill relief for low-income consumers, reducing subsidies and increasing tariffs for small users is difficult to justify.
The CAB leader also expressed concern over the lack of visible progress in promoting renewable energy, despite a global shift towards cleaner energy sources. “Across the world, governments are prioritising renewable energy. We have yet to see comparable initiatives here. This could create long-term challenges for the economy.”
He further pointed to what he termed a significant disparity in electricity distribution between urban and rural areas, saying persistent power shortages in many rural regions are creating frustration among residents.
Although the Bangladesh Rural Electrification Board is responsible for distributing around 80 percent of the country’s electricity, the CAB alleged that mismanagement, irregularities and capacity constraints are hampering the government’s goal of ensuring universal access to electricity.
The CAB called for urgent measures to address these issues and improve the overall efficiency and reliability of the power sector.