The Technical Evaluation Committee (TEC) of the Bangladesh Energy Regulatory Commission (BERC) has proposed a tariff of Tk 6.48 per unit for electricity generated by renewable energy-based merchant power plants (MPPs).
The proposed tariff includes costs for plant operation, personnel and administration, repair and maintenance, depreciation and return on investment, as well as expenses related to metering, Automated Meter Reading (AMR), meter testing and sealing, billing and collection, distribution losses and energy management.
The proposal was presented at a public hearing organised by BERC at the International Mother Language Institute auditorium in the capital's Segunbagicha on Sunday.
Under the Merchant Power Policy 2025, large consumers, particularly exporters seeking green electricity, can bypass the conventional utility grid and purchase power directly from private producers.
Md Didarul Alam, president of the TEC, said the proposed Tk 6.48 tariff was calculated based on a 50-megawatt solar power plant.
The committee has also proposed equipping 10 to 20 per cent of a plant's capacity with battery storage to ensure a stable power supply.
Prof Shamsul Alam, energy adviser of Consumers Association of Bangladesh (CAB), questioned the proposed tariff, calling Tk 6.48 per unit "extremely high".
He said that, even after adjusting for exchange-rate differences, solar power prices in India and Pakistan are around Tk 3.80 and Tk 3.90 per unit respectively.
He also said that under Section 6(17) of the relevant law, the authority to set renewable energy prices rests with the commission, but in practice, the Power Division often determines the tariffs.
Prof Alam questioned several parameters and calculations used to determine the tariff, alleging that key data, including radiation calculations, were unclear or incomplete.
He challenged BERC to demonstrate how the proposed tariff is fair and reasonable, and criticised the existing pricing methodology for Independent Power Producers (IPPs) as "plundering".
He also called for corrections to what he described as major flaws in determining capacity payments and electricity tariffs for coal-fired and other private power plants.
Meanwhile, the Bangladesh Sustainable and Renewable Energy Association (BSREA), representing solar power plant owners, proposed reducing the Open Access Tariff to Tk 0.50 for the first five years to encourage private investment in MPPs.
The association also demanded compensation for "deemed generation" when power supply is disrupted due to faults in distribution companies' networks. It called for a minimum 20-year guaranteed operating term before an MPP can be retired and priority grid access for renewable energy.
Mustafa Azim Kasem Khan, managing director of FloSolar Solutions Ltd, warned that additional surcharges could make electricity generation more expensive and discourage investment.
He called for a rational assessment of transmission, distribution and other charges, and questioned why different charges are applied to organisations operating at the same voltage level.
Decisions in the power sector must consider impacts on investment, exports, employment and energy security, Khan said.
BERC Chairman Jalal Ahmed said several issues, including the cost of battery storage, needed further verification.
He asked stakeholders with statements or objections regarding the proposed tariff or other issues to submit them to the commission by next Thursday.
At the hearing, Prof Alam proposed introducing a smart monitoring system to oversee power supply and plant operations. He said the system could be developed within three to six months with BERC funding, reducing the workload of the Bangladesh Power Development Board while improving transparency and accountability through automation.
He also raised concerns over unused power-generation capacity, saying consumers ultimately bear the cost of idle capacity, just as they do with underutilised LPG and LNG terminals.
Prof Alam urged BERC to introduce an effective "one-stop service" for licences and clearances to help domestic entrepreneurs avoid paying bribes or additional unofficial fees.
He further said that if legal provisions are violated during renewable electricity tariff-setting and consumers suffer financial losses, those responsible should face punishment under Sections 42 and 43 of the relevant law, which provide for up to three years' imprisonment or fines.
