Political parties, rights and trade bodies oppose power tariff hike proposal
Bangladesh Energy Regulatory Commission (BERC) on Thursday started its 4-day public hearing on proposals for raising electricity tariffs both in bulk and retail levels amid opposition by political parties, trade bodies and consumer right groups, reports UNB.
On the first day of the hearing at the Trading Corporation of Bangladesh (TCB) auditorium in Kawranbazar, Dhaka, state-owned Bangladesh Power Development Board (BPDB) placed its proposal to raise bulk power tariff to Tk 5.88 from the existing rate of Tk 4.84 per unit (each kilowatt hour), by Tk 1.04.
However, a BERC technical evaluation committee found that the BPDB’s current calculated bulk price is Tk 4.77 per unit and it recommend for a rise by Tk 0.93 per unit.
But the tariff will be set by the commission on completion of hearing and other relevant process.
Taking part in such hearing for the first time, Bangladesh Nationalist Party (BNP) leader Moazzem Hossain Alal said the move to hike power tariff amid the soaring prices of essentials will be a burden for the people.
Consumers Association of Bangladesh (Cab) adviser professor M Shamsul Alam claimed that if the current leakages and corruptions could be prevented, power tariff hike will not be required.
He said that the last public hearing CAB placed 23 proposals to stop corruption and malpractices in power sector to reduce production cost. “Only of them has been implemented so far.”
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leader Anwar Hossain Chowdhury said if the power tariff is raised, the production cost in readymade garment (RMG) sector will go up and Bangladesh will lose the global market.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said the entire export sector will face further pressure in the global market competition if power tariff is hiked.
Bangladesh Communist Party leader Ruhin Hossain Prince said any further increase in power tariff will have a spillover effect on the economy when people are already experiencing excessive price hike in onion and rice.
Bangladesh Gano Sanghati Andolon convener Zonaid Saki said the power sector is also seemed to be controlled by business syndicate, which has link with leaders of ruling Bangladesh Awami League.
He said the government has already paid Tk 550 billion to such syndicate in the name of capacity payment for power purchase.
Mentioning the name of BERC member Abdul Aziz, who is made accused in a case filed by the Anti-corruption commission over Barapukuria power plant’s coal reserve issue, Bangladesh Labour Party president Mustafizur Rahman Iran demand the commission not to allow any such person to sit in the regulating body to attend the public hearing.
The BERC also held hearing on proposals placed by Power Grid Company of Bangladesh (PGCB) to raise power transmission cost to Tk 0.42 from exiting Tk 0.27 per unit.
As per the schedule, BERC will hold hearing on the retail tariff hike proposal of BPDB in the morning session on 1 December and that of Northern Electricity Supply Company Ltd (NESCO) in the second session on the same day. The hearing on the proposal of Dhaka Power Distribution Company Ltd (DPDC) will take place in the morning session and that of Dhaka Electric Supply Company Ltd (DESCO) in the second session on 2 December.
The hearing on retail-level tariff hike proposal by Bangladesh Rural Electrification Board (BREB) will be held in the morning session while discussion on the hike proposal of West Zone Power Distribution Company Ltd (WZPDC) will take place in the afternoon session on 3 December.
Both the retail and bulk electricity tariffs were raised in November 2017 with effect from 1 December of the same year.