Price of liquefied petroleum gas (LPG) remains the same for the month of December. According to Bangladesh Energy Regulatory Commission (BERC), the price of per kg LPG will remain at Tk 121.25 for the month of December as it was in November. The new prices will be effective from 6 pm today (December 3, 2024). LPG price adjustment for Dec to be announced today BERC announced the new price, saying that a 12 kg LPG cylinder’s price remains unchanged. Prices of other sizes of LPG cylinders – from 5.5 kg to 45 kg – will ramian the same, BERC said at a press briefing on Tuesday at its Dhaka office. BERC officials said LPG price remains unchanged in the local market as Bangladeshi LPG operators normally import their products from the Middle-Eastern market on the basis of Saudi CP which did not change. As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also remained at Tk 66.81 per litre (including VAT). LPG price remains almost the same for November The price of LPG, marketed by state-owned LP Gas Company, will also remain the same as it is locally produced with a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12 kg cylinder) in the local market in February last year. 12 kg LPG cylinder price hiked by Tk 35

Bangladesh Energy Regulatory Commission (BERC) will fix the prices of gas and electricity through public hearings, not by any executive order, said Energy Adviser Muhammad Fouzul Kabir Khan. He said this while speaking at a seminar titled ‘Sustainable Energy for Bangladesh and Challenges’ held at a hotel in the capital on Sunday. The Foreign Investors' Chamber of Commerce and Industry (FICCI) organised the seminar. He said the government wants to dig 50 exploration wells by 2025, and all procurements in the energy and power sector will be done through open tenders. Regarding political parties queries how long the interim government will remain there, he said that the current government will not get much time to reform the energy and power sector. Renewable energy can play a major role in meeting challenges of environmental degradation: Speakers The adviser termed the ‘demand season’ like paddy harvesting, but the logical demands of the Palli Vidyut Samiti have been accepted. “A decision will be taken after taking into account the demands made by the temporary workers to make them permanent. No sudden announcement can be made,” he pointed out. Industry leaders, policymakers and academics attended the event to discuss pressing challenges and potential solutions to the country's energy sector. The energy adviser said that the government's commitment to fostering a sustainable energy future for Bangladesh, highlighting ongoing initiatives to enhance energy efficiency and diversify energy sources. Dr Ijaz Hossain, former Dean of the Bangladesh University of Engineering and Technology (BUET) and a prominent professor in the Department of Chemical Engineering, presented a detailed analysis of Bangladesh's energy landscape, noting significant shifts in energy consumption patterns. As of 2022-23, the industrial sector's consumption of grid electricity was only half that of the domestic sector, a stark contrast to 2010 when both sectors consumed similar amounts, he pointed out. Govt to float open tender to drill 26 wells in gas fields soon: Energy Adviser This change, he noted, is largely due to the expansion of rural electrification. Dr Hossain also addressed the urgent need to maintain natural gas production levels, warning that without the drilling of at least ten new wells annually, the country may face increased reliance on Imported LNG. He forecast that the gas demand could reach 4,622 mmcfd by 2030, posing a significant challenge to Petrobangla's capacity to supply. Nowshad Ali, Country Manager of GE Vernova Bangladesh, served as the moderator, guiding the discussions and facilitating a dynamic exchange of ideas among panelists and attendees.

In an update from the Bangladesh Energy Regulatory Commission (BERC), the price of liquefied petroleum gas (LPG) has been adjusted upwards by Tk 0.66, setting the new rate at Tk 123.52 per kg, up from the previous Tk 122.86. This price change is effective from 6 pm on Sunday (March 03, 2024), indicating a slight increase in household and commercial expenses. BERC, at a press briefing today, detailed the adjustment, noting that the price for a standard 12 kg LPG cylinder will now be Tk 1482, inclusive of VAT, marking an increase from the previous Tk 1474. This adjustment follows a rational scale across various LPG cylinder sizes, ranging from 5.5 kg to 45 kg, addressing the need for a proportional price revision across different consumer segments. Read more: Gas shortage hits many areas in capital city Furthermore, the price for “auto gas,” the LPG variant used in motor vehicles, has also seen a revision, now priced at Tk 68.05 per litre, including VAT, a slight increase from Tk 67.68. This adjustment reflects the broader impact of LPG price changes on transportation and related costs. Notably, LPG prices marketed by the state-owned LP Gas Company will remain unchanged. This exception is attributed to its local production and the company’s minimal market share, which is less than 5 percent. The decision to adjust LPG prices comes in the wake of rising costs in the international market, specifically tied to the increase in the Saudi CP (contract price), which serves as a benchmark for local operators importing LPG primarily from the Middle East. Read more: LPG price hiked again; 12 kg cylinder to cost Tk 1433

The country’s overall power generation, combining grid capacity and off-grid (mainly captive) power, increased by about 5000MW in 2023 to reach a new benchmark of 30,700MW, although with demand failing to keep up, this is expected to lead to higher capacity payments for the government. This is disclosed in available data from the state-owned Bangladesh Power Development Board (BPDB), Bangladesh Energy Regulatory Commission (BERC) and Sustainable and Renewable Energy Development Authority (Sreda). The BPDB data shows that of the 5000MW new power generation, some 3,343MW was added to the national grid by the import electricity from India and production from newly set up local power plants while about 1400MW came from off-grid captive and off-grid solar power. Power, energy sectors are saddled with $5 billion outstanding payment amid dollar crisis: Sources It also shows that the country’s installed grid-connected power generation capacity has reached to 25,951 MW on December 30 in 2023 from 22,608 MW in 2022 showing a capacity enhancement of 3343 MW. Beyond the national grid, as per BERC data, the captive power generation has increased by 1379MW to reach 4760 MW in 2023 from 3,381MW in 2022. The captive power plants were mainly set up by industries for their own consumption to get uninterrupted power supply as the grid power does not guarantee uninterrupted supply. Govt approves import of 40 MW power from Nepal Sources in the power sector said that despite more than 40 percent surplus power generation in the country, still many industries prefer to use their captive power for uninterrupted supply. A huge number of applications remain pending with the Bangladesh Energy Regulatory Commission (BERC) to set up more captive plants. The power generation from non-conventional, or renewable sources also witnessed an increase in 2023. The Sustainable and Renewable Energy Development Authority (Sreda) statistics show that the solar power generation capacity reached 1200MW in 2023 from 700MW in 2022. Of the 1200 MW, the off grid is 366.76 MW while ongrid is 601.02 MW. However, the country’s hydroelectric capacity of 230 MW is included in the Sreda statistics. Together the new off-grid captive power and grid-connected power has pushed up the country’s total power generation capacity to 30,711 MW in 2023 from about 25,700 MW at the end of 2022. BPDB officials said that the import of 1600 MW from the Adani Group’s plant for Bangladesh in Godda, Jharkhand, has played a major role in increasing the power generation capacity of the country. Apart from the import, the commercial operations of a number of base-load power plants played a significant role in raising power generation capacity. Read more: Power, energy sectors are saddled with $5 billion outstanding payment amid dollar crisis: Sources These new power plants include 600 MW second unit of Rampal Power Plant, and 1200 MW Banshkhali power plant of S Alam Group. There is also a 200 MW Solar power plant in Khulna by Orion Group. Although this capacity enhancement in power generation is a pleasing development on the face of it, especially given the country’s long history of struggle with power shortages, BPDB officials are also quick to point out that the growing surplus capacity would also lead to a rise in capacity payments, whereby IPPs get paid even for the electricity the government doesn’t need from them. They said that the new power plants being added to the grid were set up by the IPPs, or independent power producers (the private sector firms investing in the power sector, by building and often operating the plants), and the BPDB has an obligation to purchase power from them - to not let their investment go to waste or end in loss. Having them exit the power sector due to losses would be a bigger blow to BPDB's long-term vision. The increasing burden of capacity payments may pinch the government, as well as the consumer, harder if the dollar crisis prevailing in the country persists. According to the Centre for Policy Dialogue, a Dhaka-based think tank, capacity payments to private, rental, and quick rental power plants have increased from Tk 5,376 crores in FY2017 to as high as an estimated Tk 28,000 crores in FY 2023. In 2024, surplus electricity generation capacity is projected to rise to 50 percent from the existing 40 percent, as the country’s peak hour demand is about 16,000 MW, according to a top BPDB official. It would mean even at peak demand, half the plants would be surplus to requirements, and thus lie idle. Read more: AL Pledges to Expand Modern Urban Facilities to Every Village in Smart Bangladesh

Price of liquefied petroleum gas (LPG) has been slashed again. Bangladesh Energy Regulatory Commission (BERC) announced the new price, saying that a 12kg LPG cylinder’s price has been reduced by Tk 75.24. A retail consumer will now get it at Tk 999 instead of Tk 1,074 (including VAT). Prices of other sizes of LPG cylinders – from 5.5kg to 45kg – will go down rationally, Md Nurul Amin, newly appointed chairman of BERC, said at a press briefing on Monday at the BERC office in Dhaka. The new prices will be effective from 6 pm today (July 3, 2023). LPG price drops by Tk 13.42 per kg BERC officials said the LPG price witnessed a decline in the local market due to the decrease in the prices of Saudi CP (contract price). Bangladeshi LPG operators normally import their products from the Middle-East market on the basis of Saudi CP. As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also dropped to Tk 46.59 (including VAT) per litre from the previous Tk 50.09. 12-kg LPG price goes up by Tk 57 to Tk 1235 The price of LPG, marketed by state-owned LP Gas Company, will remain the same as it is locally produced with a market share of less than 5 percent. LPG witnessed the highest price at Tk 1,498 (per 12kg cylinder) in the local market in February this year following the start of the Russia-Ukraine war in February last year. 12kg LPG cylinder to cost Tk 244 less

Former senior secretary Md Nurul Amin has been appointed as the chairman of Bangladesh Energy Regulatory Commission (BERC). Prior to the new position, the former bureaucrat, who hailed from Chandpur district, served as chairman of state-owned Karmasangshan Bank. Nurul Amin last served the Planning Ministry as its senior secretary and retired from the job in April 2022. A gazette notification, issued by the Energy and Mineral Resources division today(Tuesday), said Nurul Amin will serve the BERC for next three years from the date of his joining under a contractual agreement. Earlier, the government had appointed three new members to the BERC. They are - Dr Md Helal Uddin, Abul Khayer Md Aminur Rahman and Dr Muhammad Yamin Chowdhury. All of three appointees are retired bureaucrats. The Chairman post of the regulatory authority as the post remained vacant since January 30 this year after completion of the tenure of BERC Chairman Md. Abdul Jalil. BERC member Md. Kamruzzaman was serving as acting chairman of the regulatory body following retirement of Abdul Jalil.  

Three members have been appointed at the Bangladesh Energy Regulatory Commission (BERC). According to three separate notifications, issued by Energy and Mineral Resources Division, Helal Uddin, a former additional secretary who served as chairman of Sustainable and Renewable Energy Authority of Bangladesh (Sreda), former director general of Hydrogen Unit Abul Khair Md Aminur Rahman and Dr Md Yamin Chowdhury have been made its members. Also Read: JS passes amendment to BERC Act amid opposition protests On January 31, contract tenures of chairman and three members expired and the posts remained vacant. Now only one member of the BERC, out of 5, is now serving.  

Electricity tariff was raised in Bangladesh at both retail and bulk levels, with effect from tomorrow (February 1). The Power Division — through administrative order and in two separate gazette notifications — raised the tariff. According to the new order, the retail tariff was raised at different levels of consumers. The tariff was raised for lower-level consumers by an average 5 percent to Tk 4.14 per unit (each kilowatt hour) from Tk 3.94 per unit. Bulk tariff was raised by 8.06 percent to Tk 6.70 from Tk 6.20 per unit. Enhancement in bulk tariff means, the distribution companies will purchase electricity by an increased rate of Tk 0.50 per unit from Bangladesh Power Development Board (BPDB) while enhancement in retail tariff means, consumers will have to pay enhanced rate for using electricity. Read more: BPDB submits retail power tariff adjustment proposal seeking a 19.44 percent hike Earlier on January 13, the government raised the electricity tariff by 5 percent at the retail level with effect from January 1. At that time, the average tariff for all consumers went up by Tk 0.36 to Tk 7.49 from Tk 7.13. On November 21, the bulk power tariff was hiked by 20 percent to Tk 6.20 per kilowatt hour by Bangladesh Energy Regulatory Commission (BERC) with effect from December 1. The government recently amended the BERC Act empowering the Power Division to raise power, gas and petroleum fuel by administrative power any time it wants. Read more: CPD raises question about power tariff enhancement proposal Applying that amended Act, the new gazette notification was issued on January 30 to raise the electricity tariff at bulk and retail levels, bypassing the authorities of the energy regulator. Meanwhile, energy experts believe the tariff enhancement decision came in compliance with the conditions of the International Monetary Fund (IMF) that recently approved $4.5 billion in loan to Bangladesh.

The financial loss of the state-owned Bangladesh Power Development Board (BPDB) is likely to cross Tk 54,000 crore in the current fiscal after the hike in the price of gas increased their input cost. In 2021-22 its losses were Tk 29,915 crore. “We have to count Tk 10,000 crore extra cost to pay the gas bills following the new gas price enhancement,” a top official of the BPDB told UNB. He said the new cost of gas purchase was already communicated to the Power Division which had already raised the issue at a high-level meeting at the Prime Minister’s Office (PMO) seeking further instruction. The government on January 18 raised the retail gas prices for public, private and captive power plants and also for industries and commercial users with effect from February 1. Also Read: Saudi firm, BPDB sign deal to set up 1000MW solar power plant in Bangladesh As per the new government announcement, the gas prices have been increased by almost three times for public and private power plants while almost double for captive power plants and industries, and significantly hiked for commercial users. However, prices for household consumers, CNG-run for motor vehicles and tea estates were kept unchanged.  The Energy and Mineral Resources Division set the prices through a gazette notification issued on Wednesday applying the new amendment to the Bangladesh Energy Regulatory Commission (BERC) Act, which empowered the government to set all kinds of energy prices bypassing the regulator’s jurisdictions at any time. As per the gazette notification, the public and private power plants including the IPP and rental power plants will pay gas price at Tk 14 per unit (each cubic metre) instead of previous price of Tk 5.02. The rise is 179 percent. Read More: The Tk 700 crore per month hole in the deal with Adani Power The captive power plants, small power plants and commercial power plants will pay Tk 30 per unit instead of the previous price of Tk 16 which is an 88 percent rise. It means after the current enhancement in gas price, the loss in the space of one fiscal will go up by over Tk 24,000 crore, said the sources at the BPDB - an almost 80 percent jump. According to BPDB’s own latest estimates, the financial loss was supposed to cross Tk 48,000 crore in the 2022-23 fiscal from Tk 29,915 crore in the fiscal year 2021-22. But after the hike in bulk power tariff, the loss was calculated to come down by about Tk 4000 to Tk 44,000 crore. “But now the loss will go up by Tk 10,000 crore due to the gas price hike effective from February 1,” said the official referring to their latest calculation.     Read More: Saudi firm, BPDB sign deal to set up 1000MW solar power plant in Bangladesh The directorate of finance of BPDB prepared this calculation on the basis of an audited report, official sources said. On November 21, the bulk power tariff was raised by about 19.92 percent – to Tk 6.20 per kilowatt hour (each unit) from the previous Tk 5.17 – with effect from December 2022. As per the calculation, the loss has shot up excessively mainly for the two reasons — primary fuel price escalation and devaluation of the local currency. "Among the two, the devaluation of local currency emerged as the major reason," a top official of the BPDB told UNB. Read More: BPDB’s financial loss set to increase by over two-thirds to Tk 48,000cr He informed that the BPDB was going to incur a loss of about Tk 10,000 crore solely due to the high rate of dollar. Earlier, the US dollar exchange rate was calculated at Tk 85 which is now at Tk 107 which means the cost increased by Tk 22 per dollar. The BPDB has to pay about $9 billion annually to buy electricity from private sector plants, to pay capacity charges and also to import other materials from abroad for its own purposes.   The BPDB has a power purchase agreement with a huge number of private power generation companies to buy their electricity. Available statistics reveal, currently, the country’s installed power generation capacity is over 25,500 MW and more than 50 percent of electricity is generated by the private sector through independent power producers, rental and quick rental power plants. Read More: BPDB submits retail power tariff adjustment proposal seeking a 19.44 percent hike Import of electricity from India is also counted as private sector generation. The private sector operators mainly use furnace oil, natural gas and diesel. Of these, 4,700 MW is generated by using furnace oil.

The government has raised the electricity tariff by 5 percent at the retail level. Now the average tariff for all consumers will go up by Tk0.36 to Tk7.49 from Tk7.13, the Power Division said in a media statement Thursday. The tariff for lifeline consumers, who use up to 50 units (kwh) a month, was raised by Tk0.19 to Tk3.94 per unit from Tk3.75. The new tariff will be effective from January 1. The monthly demand charge was also raised for different types of consumers. The tariff was raised through an administrative order, issued by a gazette notification in the evening. The decision to raise the power tariff at the retail level was taken under the new amendment to the BERC Act, which allowed the government to take any decision in this regard bypassing the regulator's jurisdiction. However, the Power Division's 19-page gazette notification did not say anything about the average hike in tariff or its increase in percentage. Read more: Govt to raise retail power tariff this month State Minister for Power, Energy and Mineral Resources Nasrul Hamid clarified it saying the electricity tariff was raised by Tk0.19 per unit at the retail level, 5 percent up from the existing one. Nasrul also said the tariff will be adjusted every month from now on. "We had to raise the tariff to cover about 20 percent hike in bulk level while the government subsidy was also taken into consideration," he told UNB. "In this fiscal year, the government will have to provide Tk28,000 crore as a subsidy, which was Tk17,000 crore in the last fiscal year." Justifying the 5 percent hike in retail tariff, the state minister said that the government had to go for upward tariff adjustment because of the growing energy prices globally. "The coal price has gone up to $250 per metric tonne, which was only $90 per MT last year." Earlier, BERC raised the bulk power tariff by about 19.92 percent on November 21 with effect from December 1. After that, six power distribution entities submitted their respective proposals to BERC seeking a similar, 19.44 percent, hike in retail power tariff at the consumer level. But within a week, the cabinet on November 28 approved an amendment to the BERC Ordinance 2022, allowing the government to set fuel tariffs on its own under special circumstances without having to wait for the commission's public hearing and decision. Read more: CPD raises question about power tariff enhancement proposal Earlier, during a public hearing, the technical evaluation committee (TEC) of BERC recommended raising the weighted average tariff of electricity by 15.43 percent at the retail level against the demand of the distribution companies for hiking it by about 20 percent. The committee suggested setting the weighted average retail tariff at Tk8.23 against the existing Tk7.13 per unit (each kilowatt hour) with a hike of Tk1.10 per unit. Consumers Association of Bangladesh Vice-President Professor M Shamsul Alam called the power tariff hike by the government's raising with an administrative order a "bad example," which will "encourage corruption and irregularities in the power sector." This move will be detrimental to ensuring accountability and transparency which is being established by BERC's public hearing, he said.