Bangladesh’s apparel manufacturers are demanding implementation of a clear strategy in energy supply to its industry following fears of a hike in bulk power tariff. Manufacturers feel a need for holistic plan for energy supply as key area of concern for entrepreneurs to take planned investment decisions. The country has already raised the retail power tariff by BDT 0.35 per unit, to be effective from December 2017. The bulk tariff, used by industries, is not yet raised, prior to the hike, Bangladesh’s Power Development Board proposed raising the power tariff by 15 per cent per unit at the bulk level.
Currently, the bulk tariff per unit of electricity is BDT 4.90. The Power Development Board proposed that it should be set at BDT 5.99, however, a final decision is yet to be announced. Mohammed Nasir, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) points out energy is an absolute prerequisite to tap the potential of the industrial sector, especially the apparel industry. More development requires more energy. Therefore, the government must draw a clear strategy for supply.