THE government has raised power tariff once again at the retail level at an average of 5.3 percent or Tk 0.35 per unit, a move that we fear will put more pressure on consumers affordability at a time when the cost of living is hurting people at its worst. It will also affect the economy adding to cost of production and supply chain at all levels to make business costlier. There is also the real fear that it will add to inflation and make exports competitive. Our exporters, particularly readymade garment exporters have hardly any leverage to pass the extra cost on buyers.
The government raised power tariff in September 2015 and the new move came within two years leaving hardly any credible justification, except for more money for running a lavish government. The power sector is not subsidized any more that the government needs more money to overcome the losses. But it is paying several times higher power tariff to private producers in unsolicited projects to make them rich. For government leaders and bureaucrats it also offers opportunity to get richer.
It appears that Bangladesh Energy Regulatory Commission (BERC) has ignored all protest that stakeholders including political leaders, Bangladesh Consumers Association (BCA) and representatives of chamber bodies and trade associations made when it held the so-called public hearing from September 25 to October 5. The hearing was just eyewash like every other occasion while the BERC faithfully works to implement the government plan. This time also it sidetracked factual objections as it announced new tariff hike on Thursday to be effective from December 1. Surprisingly, the tariff hike will be effective only at retailers level; not at distribution level.
As per the new tariff rate, household consumers will have to pay Tk 4.00 per unit for a total monthly usage of 0-75 units. They will have to pay Tk 5.45 per unit for using 76-200 units, Tk 5.70 per unit for 201-300 units. At the highest consumers will have to Tk 10.70 per unit for using more than 600 units a month. Lifeline household users (0-50 units) will be billed at Tk 3.50 per unit. Irrigation pumps will be charged at Tk 4.00 per unit
The question is why the government is forcing consumers to take extra load every time without improving governance in the power sector which is marred with high corruption. Stealing electricity by employees for giving illegal connection is a regular phenomenon. Under billing for people bribing field employees is common and waste of resources with inflated purchase bills is taking away the bigger chunk of income. It is not justified to force users to pay for it. We must say a government eager to make people’s life better or at least not to overload their life with hefty electricity bill, can’t do it.
