Since February of this current year, electricity prices have risen by approximately 5% wholesale and 8.5% retail, resulting in an average increase of 34 paisa per unit wholesale and 70 paisa per unit retail. Over the past decade and a half, the government has raised prices 12 times at the wholesale level and 14 times at the retail level.

Although the government cites subsidy reduction as the reason for the price hikes, experts argue that rampant corruption and irregularities in this sector are the actual reasons for the repeated increases. They claim that the government is passing the cost of providing excessive benefits to relevant parties onto the general public.

Energy sector experts mention that the indemnity bill has legalized the irregularities and corruption in this sector. As a result, there is no accurate accounting of expenditures in any area of the electricity sector. The government's initiative to rapidly advance the country's electricity sector to the pinnacle of development has encouraged corruption, and now the government is unable to rein it in.

Economic analysts point out that there has been limitless corruption in various sectors, including banking, over the past decade and a half, impacting the national economy. Due to shrinking domestic sources, the government is increasingly reliant on foreign loans and has had to seek assistance from the World Bank and IMF. These institutions are also playing a role in the increase in electricity and fuel prices.

Most recently, on last Thursday, the International Monetary Fund (IMF) recommended increasing prices for electricity, gas, and fertilizers as part of phased subsidy reduction in other sectors to improve budget management. An IMF delegation discussed this recommendation during a meeting with the Budget Division of the Ministry of Finance.

Prominent economists in the country have criticized the IMF's advice as anti-people, pointing out that lifting subsidies will lead to price increases, creating financial hardships for the common people. They have called on the government to reject these conditions.

Sources from the Ministry of Finance have indicated that while the government welcomes the phased, formula-based pricing adjustment system for petroleum products, the IMF has recommended reducing subsidies and increasing prices for electricity, gas, and fertilizers to enhance overall budget management.

Officials from the Finance Division mentioned that the government will continue to provide adequate subsidies in agriculture to ensure food security, but plans to gradually reduce subsidies and increase prices for electricity and gas.

Professor M Shamsul Alam, an energy advisor to the Consumers Association of Bangladesh (CAB), stated that the IMF's recommendation to reduce subsidies for electricity, gas, and fertilizers is inappropriate and objectionable as it appears the IMF is looking for commercial profits, not considering the welfare of the general public. Removing subsidies would lead to price increases for electricity, gas, and fertilizers, escalating inflation and placing severe financial strain on ordinary people.

Dr. Zahid Hossain, former chief economist at the World Bank, commented that price hikes in electricity will increase inflation and further reduce the purchasing power of ordinary people. He argued that if corruption were reduced, load management improved, and controversial charges like capacity charges addressed, production costs could be lowered without burdening consumers.

Since the Awami League government came to power in 2009, it has undertaken mega projects in the electricity sector. The establishment of rental power plants under the guise of quick rentals has provided opportunities for party leaders and workers to embezzle funds. Over the past 14 years, 90,000 crore BDT has been paid in capacity charges, totaling a loss of 105,419 crore BDT in the electricity sector over the last 12 years, with economists predicting this figure will rise further.

Dr. Khandaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), stated that rental power plants have become a major headache for the government. Not only is renting centers costly, but purchasing electricity at high prices also increases expenses. Additionally, the lack of competition in this sector is problematic; contracts with power plants are made through negotiations instead of competitive bidding, which would have reduced production costs.