The Bangladesh Energy Regulatory Commission (BERC) is set to raise power tariff once again.
The power tariff hike will be applicable both at the wholesale and retail levels.
BERC came up with the move after scrutinising a proposal for the power price hike placed by the Power Development Board (PDB) along with other distribution companies.
BERC sources said PDB proposed to increase power tariff up to 15 per cent for the distribution companies at the wholesale level while 8-12 per cent at the retailing level.
Between 1 March 2010 and 1 September 2015, the price of electricity was raised six times at the wholesale level and seven times at the retailing level.
However, on 1 September 2015, the government increased the cost of electricity for the last time.
Now, production of per unit (1 kilowatt) electricity cost Tk 5.59. In addition with the distribution and supply charge, it stands for Tk 6.73. If the price of electricity is raised as per the proposal, per unit (1 kilowatt) electricity cost will rise to Tk 7.71.
BERC sources also said more than one power distribution company have proposed the increase of demand charge from Tk 30 to 40 while service charge Tk 10 to Tk 20.
Asked about the proposed power tariff hike, state minister for power, energy and mineral resources Nasrul Hamid told Prothom Alo 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 in the past. The government has to subsidies nearly Tk 50 billion to this sector.
“Thus the government has no choice but to raise the tariff.”
Energy adviser to Consumer Association of Bangladesh (CAB), M Shamsul Alam said there is no reason behind increasing power tariff, but there is a leeway to reduce the prices of electricity.
Source: Prothom Alo
