Staff Reporter :
The energy regulator has initiated a process to raise power tariff once again, both at the wholesale and retail levels.
The Bangladesh Energy Regulatory Commission (BREC) came up with the move after scrutinising a proposal for the power price hike placed by the Bangladesh Power Development Board (BPDB) along with other distribution companies.
BERC officials said, BPDB proposed for increasing power tariff up to 15 per cent for the distribution companies at wholesale level and 8-12 per cent at retail level.
Between 1 March 2010 and 1 September 2015, the price of electricity was raised six times at wholesale level and seven times at retail level.
The government increased the cost of electricity last on 1 September, 2015.
Now, production of per unit (1 kilowatt) electricity costs Tk 5.59. In addition to the distribution and supply charges, it stands at Tk 6.73. If the price of electricity is raised as per the proposal, per unit (1 kilowatt) electricity cost will be raised to Tk 7.71.
More than one power distribution company have proposed the hike in demand charge from Tk 30 to 40 and service charge from Tk 10 to Tk 20.
Asked about the proposed power tariff hike, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that the fuel prices used for the power generation have been increased.
Most of the power generation plants have to buy furnace oil at higher prices than those in the past. The government has to subsidise nearly Tk 50 billion to this sector, he said.
“Thus the government has no choice but to raise the tariff,” the Minister said.
Energy Adviser to the Consumer Association of Bangladesh (CAB), Professor Shamsul Alam said there is no reason behind increasing power tariff, but there is a leeway to reduce the prices of electricity. Power generation cost stood below Tk 7.00 per unit electricity as per the present international market price of furnace oil.
The government is making double profit by selling furnace oil and electricity at higher price at retail level, Professor Shamsul Alam said.
