Power tariff hike: Running a business to become tougher

We, the business community, had requested the government not to hike the electricity price during this time of high inflation. Production costs in factories have been on the rise due to various issues. We made the request considering the fact that the fuel oil prices were already increased.

But the government decided to raise the price at its own discretion. Electricity is used more or less everywhere, from homes to industries. So the price hike will have a bearing on all sectors.

We have always been demanding that the government disclose its intention to raise the electricity price in advance so that all can prepare accordingly. Electricity is considered as a direct cost in businesses and factories. When the increase in direct cost remains uncertain, it also creates uncertainty in business operations.

No one would definitely want to deal with such a situation. The power tariff has been hiked by 5 per cent now. If we had the assurance that the price would not be hiked further in the next one year, the prices of some products would have been kept under control.

A kind of pressure has been created due to inflation. The local currency depreciated by 25 per cent in the context of imports. The power tariff hike would gear up inflation further. In the aftermath, it would really be more difficult to run a business.

Bangladesh Energy Regulatory Commission (BERC) used to increase the electricity price in the past. This time the government has raised the price through an executive order. The government might have done it as per the situation's demand, but the decision to bypass BERC did not go well.

The author is a former president of Dhaka Chamber of Commerce and Industry (DCCI).