The Foreign Investors' Chamber of Commerce and Industry (FICCI) expresses concern over the recent announcement by Bangladesh Energy Regulatory Commission (BERC) introducing a revised gas tariff framework differentiating between committed and existing customers in the same industrial category.
It said while the chamber fully supports the government's objective of ensuring a sustainable and reliable energy supply, the newly announced tariff mechanism risks creating unintended barriers to new and expanding industries, said a press release.
Under the current proposal, businesses with new Gas Sales Agreements (GSAs), increased demand, or recent connections will face significantly higher tariffs compared to existing customers, even within the same industrial category.
This differentiated pricing model presents several challenges. It introduces inequity in energy costs across similar operations, undermines the principle of a level playing field, and could adversely affect Bangladesh's industrial competitiveness at a time when investment momentum is building.
Importantly, it may disincentivize new foreign and domestic investments at a critical juncture, just as the government is proactively engaging the global investor community through initiatives such as the recent Investment Summit, which drew participation from nearly 50 countries.
Zaved Akhtar, President of FICCI said: "A transparent and equitable energy pricing framework is fundamental to sustaining investor confidence and industrial growth.
While we understand the evolving demands of energy management, we urge BERC to revisit this approach and ensure that policy changes align with the broader goals of economic development and FDI attraction."
FICCI further notes that the provision to treat any new Gas Sales Agreement as a new connection even for long-standing industrial users - introduces ambiguity and could lead to arbitrary reclassification.
This could inadvertently disrupt existing business continuity and create administrative and operational uncertainty. New Gas Sales Agreement with existing customers should not be falling under the tariff for new connections.
During the public hearing held on February 26, 2025, industry stakeholders collectively expressed strong reservations about the proposed tariff structure.
FICCI emphasizes the importance of continuing dialogue with all relevant stakeholders, including foreign and domestic investors, to ensure that energy reforms support inclusive and sustainable industrial growth.
FICCI remains committed to partnering with the government in achieving energy security and industrial resilience. We encourage BERC and the Ministry of Power, Energy and Mineral Resources to engage in further consultation and collaboration to ensure energy pricing remains competitive, predictable, and conducive to long-term investment.
