Dr. Md. Shairul Mashreque and Nasir Uddin :
Electricity consumption has now become a costly affair in Bangladesh. We admit that load shedding has decreased considerably. We have a plenty of electricity with its high capacity disposition reaching about 10000 megawatt. However electricity price hike at regular interval ignoring public opinion cannot be accepted whatever may the reasons assigned by the Bangladesh Energy Regulatory Commission. Consumers have been charged with high current price. Now the price is much higher all to the frustration of the common masses. According to news reports ‘The Bangladesh Energy Regulatory Commission (BERC) on 13th March, 2014 increased average retail power prices by 6.96 per cent with a retrospective effect from March 1 in breach of the government’s public commitment to decrease the tariff this year. Retail consumers on an average will need to pay Tk 6.15 a unit, or a kilowatt-hour, up by Tk 0.40 a unit from what they paid before March 1. With the latest round, the government in its two consecutive terms increased retail power prices by 63.56 per cent, increasing from Tk 3.76 a unit to Tk 6.15 on an average in seven phases since March 2010. When the Commission started increasing power prices in 2010, the government several times made a public commitment that it would decrease prices in 2014 as the average cost generation would be decreasing.’
As a matter of fact electricity consumers must be prepared to pay the price at an exorbitant rate far beyond the reach of the middle and low income groups. Recent decision of the government to increase power tariff is sure to land consumers in good deal of sufferings. It will bear heavy upon the urban city dwellers who are consuming much power for enjoying the amenities like, TV, fridge, computer, washing machine etc. Urban city dwellers living in dilapidated conditions too may find it difficult to pay higher electricity price. Extension of tenure of several rental and quick rental power plants to combat load shedding is most welcome. But heavy cost is being borne by the consumers. At times we are critical of slow and non-implementation of big power plants. As per the initial plan the government was supposed to reduce power tariff. Distressingly there has been a sharp rise in power tariff. This is no a sign of good governance.
‘The Power Division under the Ministry of Power, Energy and Mineral Resources is now scrutinizing several such proposals from some other rental and quick rental power plant sponsors for extension of tenure. The government had stuck to its initial planning. The electricity tariff would have declined by 3.0 per cent from July 2014 and dropped further by another 3.0 per cent from July 2015. The high-cost rental and quick rental power plants were not supposed to get extension, but were to be closed after tenure. Besides, none of the medium and long-term base-load power plants is on schedule of implementation. Experts have alleged that the sponsors of big base-load power plants are slow in implementing projects ‘deliberately’, having nexus with a section of government officials to get the tenure of rental and quick rental power plants renewed as most of them are also the sponsors of such plants. With the fresh rise in power tariff, consumer will face a very tough time to cope with rising family budgets. Inflation will shoot up with cost of production rising sky-high.’
We wonder why the government has been doing it paying heed to the donors rather than to the consumers. Thing is that the government has been captive in the hands of technical thin tanks and companies serving the interests of WB and IMF. They are ruling the root. The flowing report will make the picture of government-public interface in public policy straight forward
“The consumers are set to undergo a fresh hike in electricity tariff from March as all state-owned electricity distribution companies have been asked to submit fresh proposals to the energy regulator for the hike within this month, a top official said. The Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) asked the electricity distribution companies to submit their respective proposals to BERC, he said. BERC will arrange public hearing as per regulation before announcing a fresh tariff hike, the official added. The announcement is likely to come by the end of March, but the tariff hike might have the retrospective effect from March 1, 2014, the official added. The Power Division has moved again for raising the electricity tariff after getting a go-ahead from Prime Minister Sheikh Hasina, who is also the minister of the MPEMR, on February 6, 2014. During a meeting with the officials of the MPEMR, the Prime Minister has reportedly directed them to expedite the process of raising electricity tariff as the ministry officials in a presentation stressed hike in the tariff to reduce losses of the power distribution companies. The energy regulator hiked the average bulk and retail electricity tariffs by 16.92 per cent and 15 per cent on September 20, 2012.After that hike all the electricity distribution companies submitted proposals for further hike in electricity tariff in December 2012.The commission had held public hearing on the tariff-hike proposals and decided to hike the tariff.
The state firms had then sought an average hike of around 11 per cent, within two months of the previous hike, arguing that they would have to incur loss if the tariff was not raised. BERC decided to hike tariff by 5.0 per cent on an average. But the decision was put on hold following a request from Prime Minister Sheikh Hasina that was apparently made to avert public dissatisfaction before the general election. Five state-owned power entities had said that they would require around Tk 13 billion as subsidy, if the electricity tariff were not hiked.
The technical evaluation committee of the BERC earlier had recommended a hike in electricity tariff by 3.30 per cent for Dhaka Power Distribution Company (DPDC) and 3.65 per cent for Dhaka Electric Supply Company (DESCO) consumers. DESCO had sought to raise the power tariff at the consumer level by an average of 11.69 per cent, while DPDC proposed an 11.31 per cent increase. The BERC evaluation committee had recommended 4.84 per cent and 4.15 per cent hikes in retail electricity tariffs for the consumers of Bangladesh Power Development Board (BPDB) and West Zone Power Distribution Company (WZPDC).The BPDB had sought 12 per cent hike in retail electricity tariff, while the WZPDC had sought a 9.59 per cent hike. The BPDB has argued that it would incur a loss of Tk 5.16 billion this year if the tariff is not hiked. The commission, however, opposed retail tariff hike proposal of the Rural Electrification Board (REB) saying the REB had not provided accurate information. The cost of electricity has been rising as the government has adopted short-term measures of installing dozens of high-cost diesel and furnace oil-fired rental power plants to ease the country’s mounting electricity crisis. The cost of supplying power to bulk customers in September, 2011, was Tk 4.15 per unit. It soared to around Tk 6.8 per unit by fiscal year 2012-13.It averaged Tk 2.62 per unit in fiscal year 2009-10.”(Azizur Rahman 14 March 2014).
Deferent left political parties in the capital demanded withdrawal of increased power price within 48 hours, and warned of tougher programmes if their demands were not met. Communist Party of Bangladesh and Socialist Party of Bangladesh, Democratic Left Alliance, Dhaka city unit of Gana Sanghati Andolan and Jatiya Mukti Council held separate protest rallies in front the National Press Club to press home their demand.CPB President Mujahidul Islam Selim announced 48-hour ultimatum to withdraw the increased power price, and they would hold demonstrations in front of the energy ministry.
In an exchange of views on Rampal Power Plant Energy experts and academics said the ‘government had increased the power price to satisfy the International Monetary Fund and the international oil companies.’National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports organised the programme, chaired by Jahangirnagar University teacher and Member Secretary of the committee Anu Muhammad, at CPB central office. Anu Muhammad termed the latest power price hike “unjustified” and said the government had taken the decision to compensate the loss of quick rental system.
Last far from least we advise the government to review its decision. The decision to exempt the farmers running modern irrigation is judicious. We will appreciate if government considers the predicaments of the low income consumers. High electricity may generate system loss. Drive against illegal users may well be taken. The coverage of pre-paid meter should be extended.
(Dr. Md. Shairul Mashreque, Professor of Public Administration, University of Chittagong, and Nasir Uddin, Lecturer of Public Administration, University of Chittagong)
