Kazi Zahidul Hasan :
The Power Development Board (PDB) will send a fresh proposal to the Bangladesh Energy Regulatory Commission (BERC) to raise the electricity tariff at bulk level.
Last year, in a proposal to the BERC, the PDB had recommended for a 29.39 per cent tariff hike of electricity at bulk level. But the energy regulator sent back their proposal terming it “incomplete and unrealistic”.
It also asked the PDB, the lone authority to sell bulk electricity in Bangladesh, to send a fresh proposal for its consideration.
“We are preparing a ‘complete’ proposal suggesting a realistic tariff hike at bulk electricity prices which will be sent to BERC soon,” Khaled Mahmood, Chairman of PDB, told The New Nation on Monday.
Justifying the proposal to hike power tariff afresh, the PDB Chief said the PDB is incurring huge losses every year due to the gap between the purchases of electricity and its selling prices.
“PDB is purchasing electricity from oil-based rental and quick rental power plants at high rates but selling it the distribution companies at lower rates forcing it to suffer the loss. The loss is increasing day by day as the per unit power tariff at bulk level is not being hiked in line with the purchasing rates,” he added.
Khaled Mahmood further said PDB had to face Tk 3000 crore financial losses last year due to the above mentioned reason. The amount, however, adjusted from the national exchequer as the government converted the amount into a loan to the PDB.
“We have to propose to raise the power tariff at bulk level to BERC, as our electricity purchase from rental power plants becomes unsustainable,” he added.
He, however, declined to disclose the tariff hike proposal for bulk level electricity to be proposed to the BERC this time. “An expert team is working on it …. The rate is yet to be finalized,” he added.
When asked, the PDB Chief said, “Our proposal will suggest the automatic power tariff adjustment formula considering ups and downs of power production cost by private power producers, rental and quick rentals”.
“Currently, fuel cost accounts for 60 per cent of their total power general cost, he added.
Last year, five state-owed power distribution companies sent proposals to BERC to raise retail power tariffs.
The country’s energy regulator later accepted their proposals, as the government was intended to raise power tariffs afresh to come out from subsidy burden which it has been bearing over the years.
The new electricity tariffs would come into force from April this year, sources in the BERC said.
Commenting on the proposals on bulk and retail power price hike by the PDB and other power distribution companies, Prof Shamsul Alam, Energy Adviser of the Consumer Association of Bangladesh told The New Nation yesterday that it is arbitrary and illogical when fuel oil prices come down sharply in the international markets.
“The price of petroleum products, including furnace oil, has already dropped significantly in the global market. So, the government does not need to increase the price of electricity a fresh. It should come out to reduce electricity tariffs rather than go for tariff hike, he added.
