THE costs of electricity generation are falling in the country along with the fall in fuel price internationally. But, the prices of electricity at the clients end are not being adjusted downward. On the contrary, Bangladesh Energy Regulatory Commission (BERC) is at work to raise the power tariffs again. The Power Development Board (PDB) receives electricity at a much lower price from the government-approved private power companies who import furnace oil themselves.
Needless to say the PDB’s proposal to increase different rates of electricity price does not reflect that price. The proposal contains the government-fixed oil price and the BERC is processing the proposal to raise power tariffs on the basis of that oil price.
Experts say there is no need to increase electricity prices at the moment. Sources in the Ministry of Power, Energy and Mineral Resources said the government so far gave approval to 11 rental and quick rental power companies to import furnace oil for their use. Six to seven of the companies have already started importing the fuel. Almost 730 megawatts of electricity is being generated presently, through their imported fuel.
Meanwhile, special assistant to the Chief Adviser of the Former Caretaker Government, for the Ministry of Power, Energy and Mineral Resources, Prof. M Tamim said the average electricity production cost of some companies has come down to Tk 6 because of the low fuel price. The fuel-based power plants are generating more than 2500 MW electricity. The average power production cost will come close to Tk 5 if all of them avail fuel at low price. As a result, power tariffs should not be increased and rather must decrease.
On the other hand, electricity prices have come down a little as the government has renewed the agreement with the rental and quick rental power plants to buy electricity from them. So there is no valid reason to raise electricity prices at the moment. We believe it is time to lower electricity price to facilitate new investment to help achieve higher GDP growth and also keep inflation down.
It should have been forecast that the demand for electricity would go up when economic activities would go up and alternate and cheaper ways of power generation should have been focused on, instead of the ad hoc situation we have nowhere so much electricity is being produced using fuel and raising the prices of almost everything produced through. While one can argue that something is better than nothing it is also equally certain that the high prices will add to the sufferings of the ordinary people and further inflate prices.
