Staff Reporter :
The government can keep electricity price at a reasonable level if the fuel oil price is adjusted with the global markets and priority given to lower cost power plants in electricity generation.
Professor Shamsul Alam, Energy Adviser of Consumers Association of Bangladesh (CAB), said this in a discussion meeting at Bidyut Bhaban in the city on Thursday.
State Minister for Power and Energy Nasrul Hamid, who attended the discussion as the chief guest, said the government is only adjusting the power tariff, not hiking it.
“We are not raising the power tariff. We are just adjusting it,” he said while addressing the meeting organised by CAB on its proposal to reduce the power tariff.
CAB President Ghulam Rahman presided over the discussion.
The function was also addressed, among others, by eminent energy experts Dr. M Tamim, CPB leader Ruhin Hossain Prince, convener of Ganosanghati Andolon Zonayed Saki, PDB Chairman Khaled Mahmood and FERB Chairman Arun Karmaker.
Professor Alam claimed, Power Division has been trying to increase electricity price showing an artificial loss in power generation that is similar to an offense and cheating which is a punishable offence.
Placing 15-point suggestions, he said, electricity price is possible to decrease at Tk 1.3 per unit if the suggestions are implemented.
The CAB Advisor made a presentation at the seminar where he claimed that the current price of electricity can be reduced by Tk 0.28 per unit if the government takes some rational measures.
The seminar was organised following recent public hearings arranged by the Bangladesh Energy Regulatory Commission (BERC) on the government’s proposals to raise the power tariff.
However, the regulator is yet to announce its decision on the proposals.
About the CAB’s suggestions, the state minister said the appeal should be made directly to the BERC as they are now the ultimate authority to make any decision in this regard.
He, however, said the suggestions could be discussed in a closed-door meeting to see if they have any merit for consideration.
He also noted that efficiency should be enhanced in the power sector to reduce the production cost.
“We need human resource development to reduce the power production cost. But it’s not possible right now to reduce the cost of power production as a power plant needs a 10-year time to reach a breakeven point,” he said, adding it will be possible to decease the power tariff when such breakeven time will come down to 3-4 years.
Prof Alam said if the government provides subsidy to agriculture and lifeline consumers as part of its economic policy instead of loan, it is possible to reduce the cost.
He identified a number of illogical reasons that lead to the power tariff hike. These include irrationality in power purchase, purchasing fuel at a higher price for public plants, overburden manpower and irrational capacity for rental power plants.
Energy expert Dr M Tamim said the government can take the advantage of the reduced fuel price in the international market to slash the power tariff.
The government can keep electricity price at a reasonable level if the fuel oil price is adjusted with the global markets and priority given to lower cost power plants in electricity generation.
Professor Shamsul Alam, Energy Adviser of Consumers Association of Bangladesh (CAB), said this in a discussion meeting at Bidyut Bhaban in the city on Thursday.
State Minister for Power and Energy Nasrul Hamid, who attended the discussion as the chief guest, said the government is only adjusting the power tariff, not hiking it.
“We are not raising the power tariff. We are just adjusting it,” he said while addressing the meeting organised by CAB on its proposal to reduce the power tariff.
CAB President Ghulam Rahman presided over the discussion.
The function was also addressed, among others, by eminent energy experts Dr. M Tamim, CPB leader Ruhin Hossain Prince, convener of Ganosanghati Andolon Zonayed Saki, PDB Chairman Khaled Mahmood and FERB Chairman Arun Karmaker.
Professor Alam claimed, Power Division has been trying to increase electricity price showing an artificial loss in power generation that is similar to an offense and cheating which is a punishable offence.
Placing 15-point suggestions, he said, electricity price is possible to decrease at Tk 1.3 per unit if the suggestions are implemented.
The CAB Advisor made a presentation at the seminar where he claimed that the current price of electricity can be reduced by Tk 0.28 per unit if the government takes some rational measures.
The seminar was organised following recent public hearings arranged by the Bangladesh Energy Regulatory Commission (BERC) on the government’s proposals to raise the power tariff.
However, the regulator is yet to announce its decision on the proposals.
About the CAB’s suggestions, the state minister said the appeal should be made directly to the BERC as they are now the ultimate authority to make any decision in this regard.
He, however, said the suggestions could be discussed in a closed-door meeting to see if they have any merit for consideration.
He also noted that efficiency should be enhanced in the power sector to reduce the production cost.
“We need human resource development to reduce the power production cost. But it’s not possible right now to reduce the cost of power production as a power plant needs a 10-year time to reach a breakeven point,” he said, adding it will be possible to decease the power tariff when such breakeven time will come down to 3-4 years.
Prof Alam said if the government provides subsidy to agriculture and lifeline consumers as part of its economic policy instead of loan, it is possible to reduce the cost.
He identified a number of illogical reasons that lead to the power tariff hike. These include irrationality in power purchase, purchasing fuel at a higher price for public plants, overburden manpower and irrational capacity for rental power plants.
Energy expert Dr M Tamim said the government can take the advantage of the reduced fuel price in the international market to slash the power tariff.
