UNB, Dhaka :
Bangladesh Energy Regulatory Commission chairman AR Khan on Thursday asserted that the energy sector watchdog will reach a decision regarding proposed tariff hikes independently, and without bias towards any of the stakeholders in the power and gas sectors.
“We can assure you that the commission will analyse every point of the submissions and counter-submissions made by different stakeholders. Like other regulators, our main responsibility is to protect the interest of the consumers as well as maintain a balance between the consumers and utility operators,” he said, while wrapping up the 4-day public hearing on gas price hike proposals.
The remarks came in response to the appeals by different consumer groups to act neutrally as per BERC law.
Some speakers shared their past experiences about bias in the regulating body towards the government agencies, instead of protecting the interests of consumers.
The BERC chairman gave no indication on how much time the energy regulator will take to announce its decision.
The BERC law dictates announcing a decision on any hearing within 90 days of
completing the hearing process. Earlier, the watchdog body held another 4-day public hearing on power tariff hike proposals from January 22-25. So far no decision has been forthcoming.
“Many legal and procedural questions were raised during the hearing process. So, we have to take into consideration all the pros and cons of it. We’ll comprehensively analyse everything and then make our decision,” AR Khan told reporters.
On the concluding day of the hearing, the state-owned Jalalabad Gas Transmission and Distribution Company Ltd and the Sundarban Gas Distribution Company Ltd placed their respective proposals and like other distribution companies, sought an average 40 percent gas hike over the existing rate.
They sought the increase following a verbal order of their principal body Petrobangla to fix the asset value for natural gas at Tk 25 per unit (1000 cubic metre).
As per the proposals, it will push up the single burner gas oven’s monthly bill to Tk 850 from existing Tk 400, and a double burner’s bill to Tk 1000 from existing Tk 450 at the residential consumer level, in their respective operational areas of the country.
Analysing the proposals, the technical evaluation committee of the BERC recommended only average 4.98 percent increase in the gas price of Jalalabad Gas Company for the fiscal year 2014-15, while it refrained from making any recommendation for the increase or decrease of Sundarban Gas company’s price as the company is a relatively new one that will only reach a break-even position during the current fiscal.
Like previous days, different consumer right groups, social organisations, trade bodies and left-leaning political parties vigorously opposed the price hike proposals saying that the proposals were not placed following due legal process.
Former director of Institute of Appropriate Technology of BUET Prof Nurul Islam said it would not be wise to take any decision on retail gas price until a wellhead gas price is fixed.
“It will be totally misleading to go for raising a retail price before fixing a wellhead price,” he told the hearing.
Bangladesh Energy Regulatory Commission chairman AR Khan on Thursday asserted that the energy sector watchdog will reach a decision regarding proposed tariff hikes independently, and without bias towards any of the stakeholders in the power and gas sectors.
“We can assure you that the commission will analyse every point of the submissions and counter-submissions made by different stakeholders. Like other regulators, our main responsibility is to protect the interest of the consumers as well as maintain a balance between the consumers and utility operators,” he said, while wrapping up the 4-day public hearing on gas price hike proposals.
The remarks came in response to the appeals by different consumer groups to act neutrally as per BERC law.
Some speakers shared their past experiences about bias in the regulating body towards the government agencies, instead of protecting the interests of consumers.
The BERC chairman gave no indication on how much time the energy regulator will take to announce its decision.
The BERC law dictates announcing a decision on any hearing within 90 days of
completing the hearing process. Earlier, the watchdog body held another 4-day public hearing on power tariff hike proposals from January 22-25. So far no decision has been forthcoming.
“Many legal and procedural questions were raised during the hearing process. So, we have to take into consideration all the pros and cons of it. We’ll comprehensively analyse everything and then make our decision,” AR Khan told reporters.
On the concluding day of the hearing, the state-owned Jalalabad Gas Transmission and Distribution Company Ltd and the Sundarban Gas Distribution Company Ltd placed their respective proposals and like other distribution companies, sought an average 40 percent gas hike over the existing rate.
They sought the increase following a verbal order of their principal body Petrobangla to fix the asset value for natural gas at Tk 25 per unit (1000 cubic metre).
As per the proposals, it will push up the single burner gas oven’s monthly bill to Tk 850 from existing Tk 400, and a double burner’s bill to Tk 1000 from existing Tk 450 at the residential consumer level, in their respective operational areas of the country.
Analysing the proposals, the technical evaluation committee of the BERC recommended only average 4.98 percent increase in the gas price of Jalalabad Gas Company for the fiscal year 2014-15, while it refrained from making any recommendation for the increase or decrease of Sundarban Gas company’s price as the company is a relatively new one that will only reach a break-even position during the current fiscal.
Like previous days, different consumer right groups, social organisations, trade bodies and left-leaning political parties vigorously opposed the price hike proposals saying that the proposals were not placed following due legal process.
Former director of Institute of Appropriate Technology of BUET Prof Nurul Islam said it would not be wise to take any decision on retail gas price until a wellhead gas price is fixed.
“It will be totally misleading to go for raising a retail price before fixing a wellhead price,” he told the hearing.
