The anvils are in danger of falling silent. In a desperate plea to the government, the architects of Bangladesh’s infrastructure—our steel manufacturers—are sounding the alarm against a proposed hike in electricity tariffs. They warn that turning up the dial on power costs will be the final death blow to an industry already suffocating under a mountain of production expenses, evaporating market demand, and a notoriously hostile business climate.

A Sector Under Siege

The grim reality was laid bare at a highly charged press conference inside Dhaka’s Economic Reporters’ Forum. Heavyweights from the Bangladesh Steel Manufacturers Association (BSMA) painted a bleak picture of a sector fighting a brutal, multi-front war. Today’s steel makers are battling global economic tremors, punishing borrowing costs, chronic gas starvation, and a suffocating drought of investment.

The warning from BSMA President Mohammad Jahangir Alam was chillingly direct. “If electricity prices are increased again, production costs will rise sharply, and many factories will be forced to reduce production,” he declared, raising the terrifying specter that some plants could face partial or complete shutdown.

The Staggering Math of Survival

For these manufacturers, the math is already a nightmare. Industry leaders pointed out that the cost of keeping the lights on has skyrocketed by a punishing 30 percent in recent years, while gas prices have exploded by an unthinkable 300 percent in some instances.

Add to this a relentless barrage of external crises, and the steel sector is essentially fighting for its life against:

  • The lingering, deep-seated scars of the Covid-19 pandemic.

  • The ongoing chaos of crippled global supply chains.

  • The harsh economic fallout from the Russia-Ukraine war.

  • Wild exchange rate volatility and escalating uncertainty in the Middle East.

Stealth Hikes and Parasitic Fees

The outrage doesn’t stop at the base electricity rate. The BSMA took dead aim at a web of hidden financial traps imposed on industrial consumers—specifically demand charges, extra VAT, and power factor penalties—calling them out as indirect, stealth tariff hikes.

There is a bitter irony at play: massive steel plants draw their lifeblood through highly efficient 33kV, 132kV, and 230kV high-voltage lines where system and distribution losses are practically zero. Yet, they are still slapped with these unjustified, parasitic fees.

Furthermore, the association threw a harsh spotlight on the controversial capacity payment system, demanding an immediate reckoning for the mind-boggling Tk 50,000 crore bleeding out of the power sector annually as capacity charges.

The Final Ultimatum

The BSMA has laid its cards on the table for the government and the Bangladesh Energy Regulatory Commission (BERC), delivering a clear set of demands to save the industry:

  • Tariff Freeze: Keep base electricity prices entirely unchanged for the vulnerable steel sector.

  • Fee Reductions: Drastically reduce crippling demand charges and supplementary VAT.

  • Surcharge Overhaul: Reconsider and revise power factor surcharges that unfairly penalize factories.

  • Specialized Rates: Introduce dedicated, special tariffs specifically tailored to protect high-voltage industrial consumers.