Which one should be given priority and precedence in the power sector, reform or tariff hikes to trim off subsidy? Reform should start with better and more fuel-efficient power plants which need considerable capital outlay. In my consideration, the expanses should come from income of the power plants and not at all from the government coffers. Power tariff should be made realistic and not subsidised, which has become the trend to increase returns from power generation.
Only export-oriented industries can be allowed a reasonable rebate on their power tariff based on each individual case but not the domestic and commercial users of power. In no case, commercial users of power, who earn from this subsidised power tariff, can be logically considered for any subsidy. Today the state subsidises all power costs and the benefits of low subsidised power tariff is being enjoyed by and large by the residents in urban areas who live far better life than most of our rural people. Their incomes too are possibly far higher, with a few exceptions, than most people living in the rural areas.
Considering these realities we should have a more rational and realistic power tariff. Subsidy level must be gradually reduced based on that of today's. This is rational, logical and pragmatic and needs to be implemented as the topmost reform objective.
Engr SA Mansoor
Gulshan, Dhaka
sam@dhakacom.com
On power sector reform
FE Team | Published: February 21, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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