United News of Bangladesh

Chairperson of the European Union Chamber of Commerce in Bangladesh (EuroCham) Nuria Lopez has said maintaining a "predictable and balanced" energy tariff regime is essential for ensuring investor confidence and supporting industrial expansion. "We believe a collaborative approach to policy design can help avoid business disruptions and send a positive signal to potential investors," Lopez said. In the spirit of constructive collaboration and shared commitment to Bangladesh’s economic progress, the EuroCham of Bangladesh on Tuesday emphasised the importance of working hand in hand with the government and relevant stakeholders to create a more conducive environment for European investors. EuroCham acknowledged the government’s efforts towards a sustainable energy future and appreciates the progress made in energy sector reforms. The Chamber, however, said they remain "concerned" about the recently announced gas tariff structure by the Bangladesh Energy Regulatory Commission (BERC), which introduces differential pricing based on industrial consumers’ contractual timelines and gas connections. While recognising the complexity of energy policy, EuroCham believes that the current model—placing higher tariffs on new and expanding industries—may unintentionally undermine Bangladesh’s competitiveness and investment appeal. Soybean oil prices go up Fragmented energy costs within the same sector risk discouraging both foreign and domestic investment at a time when Bangladesh is actively positioning itself as an attractive global business destination. EuroCham also points to the ambiguity surrounding the reclassification of long-standing industrial users under new Gas Sales Agreements and encourages BERC to approach such transitions with clarity and fairness to avoid unnecessary administrative and financial burdens. Echoing sentiments shared during the recent public hearing, EuroCham supports calls for a more inclusive and transparent reform process. The Chamber encourages BERC to engage more deeply with industry stakeholders in designing an energy pricing framework that aligns with the nation’s goals of industrial resilience, energy security and sustainable economic development. EuroCham said it remains fully committed to partnering with the government to shape policies that promote inclusive growth and a competitive business environment for all.

Some top 15 business leaders on Monday jointly appealed to the Bangladesh Energy Regulatory Commission (BERC) to turn town the proposal of Petrobangla and six other gas distribution companies to raise the gas price for additional load and new connections. The business leaders include Bangladesh Textile Mills Association (BTMA) Shawkat Aziz Russel, former FBCCI president Mir Nasir Hossain, BGMEA administrator Anwar Hossain, BCI president Anwar-ul-Alam Chowdhury Parvez, MCCI President Kamran T Rahman, DCCI president Taskin Ahmed, BKMEA President Mohammad Hatem, LFMEAB President Syed Nasim Manjur, BCMEA President Mainul Islam Shawpan, BPGMEA President Shamim Ahmed, managing director of City Group Md Hasan and chairman of Uttara Motors Corporation Md Matiur Rahman. The business leaders referring to the BERC’s recent hearing on the issue said that raising gas price for any particular group of consumers will create discrimination among the industries which is contrary to the country’s constitution as well as the BERC Act. They said instead of raising gas price, the BERC should take measures to reduce the 13 percent system loss. CAB demands postponement of gas price hike hearing It said that the country’s business community has been in a great dilemma following the move by the Petrobangla and its six distribution companies to raise the gas price for additional load and new connections. If the gas price is raised by any means it will have a negative impact on the overall business as private enterprises contribute 90 percent to the country’s economy, said the business leaders.

Price of liquefied petroleum gas (LPG)  will remain unchanged for the month of January. This is second consecutive month the price of LPG remains the same. According to Bangladesh Energy Regulatory Commission (BERC), the price of per kg LPG will remain at Tk 121.25 for the month of January as it was in November and December. The decision will be effective from 6 pm today (December 3, 2024). BERC announced the decision saying that a 12 kg LPG cylinder’s price will remain unchanged. Prices of other sizes of LPG cylinders – from 5.5 kg to 45 kg – will be the same, BERC said at a press briefing on Thursday at its Dhaka office. BERC officials said LPG price remains unaffected 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. Read: LPG prices remain unchanged for December: BERC As per the BERC decision, the price of “auto gas” (LPG used for motor vehicles) also remained at Tk 66.78 per litre (including VAT). 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.

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.