PDB seeks 14.50pc hike in retail power tariff

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UNB, Dhaka :
Claiming that it is compelled to generate electricity from high-cost liquid fuel and purchase power from high-cost fuel-fired private sector plants, state-owned Power Development Board (PDB) on Tuesday sought a 14.50 percent hike in retail power tariff.
In its proposal placed to Bangladesh Energy Regulatory Commission (Berc), the PDB sought to raise the average retail power tariff by Tk 0.98 to Tk 7.71 per unit from the existing Tk 6.73.
“The compulsion to buy high-cost power has pushed us to go for raising the power tariff at both the retail and bulk levels to offset the growing generation expense,” said PDB Chairman Khaled Mahmood while formally placing the proposal at the public hearing arranged by Berc.
Earlier, on Monday, PDB placed another proposal to raise the power tariff by Tk 22.24 percent at the bulk level.
The PDB also proposed that a separate tariff structure be in place for motor vehicles which use electricity for charging their batteries and consumers in apartments run by associations pay high for using electricity.
A Berc technical committee, however, recommended a retail tariff hike by 10.65 percent or Tk 0.72 per unit to refix the tariff at Tk 7.48 per unit from the current rate of Tk 6.73.
Meanwhile, the five-member Berc, headed by its Chairman Monwar Islam, will take the final decision on the tariff hike on completion of the current hearings.
At present, the PDB is generating 25 percent of total electricity from its own while it has to buy remaining 75 percent from other sources, including rental, quick rental, IPP, state-owned companies and import from India.
The generation cost for power using gas is Tk 2.54 per unit while Tk 21.28 for
diesel, Tk 10.51 for furnace oil, Tk 1.77 for hydro, Tk 8.24 for coal and 5.57 for import per unit.
Some 65 percent power is generated from gas while 17.98 percent from furnace oil and 4.78 percent from diesel. The rest 8.41 percent electricity is imported.
Opposing the PDB’s retail tariff hike proposal, the consumer rights groups and left-leaning parties said the government’s wrong strategy and policy have put the PDB in trouble.
They alleged that the PDB is not allowed to generate lowest cost electricity as its gas is diverted to private power producers to generate power and it is being forced to buy power at a higher cost.
Consumers Association of Bangladesh’s Adviser Prof Shamsul Alam said the PDB cannot allow the private power producers to make money digging holes in their pockets.
CPB leader Ruhin Hossain Prince and Gonosonghoti Andolon chief coordinator Jonayed Saki also spoke at the public hearing presided over by Berc Chairman Monwar Islam.
Other members of the regulatory body-Rahman Murshed, Mizanur Rahman, Abdul Aziz Khan and Masudul Haque Bhuiyan-were present on the occasion.
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