2017 has been the one year for people reeling from frequent energy price hikes that raised the cost of living as experienced throughout the two successive tenures of the Awami League-led government. In this year, the Bangladesh Energy Regulatory Commission raised average retail prices of natural gas by 17.55 per cent, up from Tk 6.38 to Tk 7.50 per cubic metre, in two phases – on March 1 and June 1. The commission also raised the average retail prices of electricity by 5.3 per cent, up from Tk 6.49 to Tk 6.84 per unit or kilowatt-hour, at the consumers’ end with effect from December 1. To cut a long story short – The consumers have been subjected to the recent eighth power price hike in eight years.
The questions involuntarily arise, how rational have been the series of hikes? Also as the price of fuel oil has fallen considerably in the international market, is it not possible for the government to reduce the price of power in line with the global trend?
The government defended the new tariff hike of power prices just by saying that such adjustment was necessary to meet revenue requirements of the power distributors. But the Bangladesh Power Development Board (BPDB) said a hike in tariff was needed due to increased use of furnace oil and diesel in power generation, following the apparent reasons to buy power from the private sector, increasing energy prices, interest paid against government loans and supplying power to rural Palli Bidyut Samity at comparatively lower prices.
However, the self-conflicting reasons stated by the two have often confused the public and us. Moreover, PM’s adviser for power, energy and mineral resources has been reported to have said that the latest increase in power prices is a ‘mundane matter’. This is not at all a sensible remark, considering the additional pressure caused by this price hike on the struggling majority. Needs be mentioned, unwarranted hike in power price is, however, bound to increase prices of goods, education and health services. It also comes as a burden on low-income people.
We often wonder why the government is lacking in initiatives and drive to raise the efficiency of power distribution companies. No steps have so far been taken to cut the system losses of such entities. No long-term steps have been taken to reduce the cost of electricity generation. With the New Year knocking at our doors, this mustn’t be allowed to continue.
