BERC Fixes Tariffs for Merchant Solar Power and Open Access

The Bangladesh Energy Regulatory Commission (BERC) has established electricity purchase prices for merchant solar power plants and determined open access tariffs for utilizing the national grid, effective from the October 2026 billing cycle until further notice. Under the decision, the Bangladesh Power Development Board (BPDB) will procure solar energy at Tk 6.98 per unit for 33 kV connections and Tk 7.11 per unit for 132 kV connections. Merchant operators can supply up to 20 percent of their output to the public distribution system, while the remaining 80 percent may be sold directly to large industrial buyers at mutually negotiated prices.

To transmit electricity across the state-owned infrastructure, power producers must pay open access tariffs ranging from Tk 1.22 to Tk 1.9097 per unit depending on connection voltage and location. When power is delivered via state distribution utilities, fixed rates stand at Tk 1.5989 per unit at 230 kV, Tk 1.6025 at 132 kV, and Tk 1.6097 at 33 kV. These fees incorporate transmission costs set between Tk 0.3789 and Tk 0.3897 per unit, a consumer-end distribution fee of Tk 1.17 per unit, and an energy accounting charge of Tk 0.05 per unit.

For transactions involving distinct distribution regions between the generator and consumer, an additional cross-utility distribution charge of Tk 0.30 per unit applies, raising cumulative fees to Tk 1.8989, Tk 1.9025, and Tk 1.9097 per unit across respective voltage levels. However, this extra charge is waived if both parties operate within the same distribution domain. Individual distribution utility tariffs were also fixed per unit, specifying Tk 0.70 for BPDB, Tk 1.43 for REB, Tk 0.85 for DPDC, Tk 0.99 for DESCO, Tk 0.87 for WZPDCL, and Tk 1.04 for NESCO.

Central oversight, energy production tracking, and bill settlements will be managed by BPDB, which will levy a dedicated energy management charge of Tk 0.05 per unit alongside standard grid transmission and distribution loss adjustments. Formulated under the Merchant Power Policy 2025, this regulatory framework aims to catalyze private renewable investment by allowing regional solar plants to wheel power to remote industrial customers, supporting a pipeline of over 600 MW in active merchant solar projects nationwide.

The tariff order followed public hearings conducted in August, where BERC’s technical evaluation committee initially suggested a purchase rate of Tk 6.48 per unit before the commission set final higher figures. During the hearings, representatives from power distribution companies expressed deep operational concerns regarding potential revenue shortfalls resulting from the exit of bulk industrial consumers from traditional utility billing, while commission officials emphasized balancing private investor incentives with grid sustainability.