The Power Development Board (PDB), Dhaka Power Distribution Company (DPDC) and Dhaka Electric Supply Company (Desco) proposed a tariff hike for retail consumers. The distributors have sought to increase prices for the sixth time in two years.
Households consuming less electricity might be slapped with a higher power tariff hike compared to the heavy users. In September 2012, the Bangladesh Energy Regulatory Commission (BERC) last increased the retail power tariff. Retail prices went up by 15 per cent and bulk prices by 17 per cent. The energy regulator BERC has recommended a 3.48 per cent consumer power tariff hike in rural areas. The final decision on the power price hike may come later this month and the increase could be a single digit in retail tariff. The rental power serves only the interests of the vested quarters.
Despite the government subsidies over Tk 170 billion for the sector, a total of 11 retail and bulk price hikes of power occurred in the last five years. The government's wrong policies were responsible for the increase in the production cost of electricity that forces power price hike. The tariff hike has already incited controversies across the country. A number of consumer rights groups, business chambers and left-leaning political parties rejected the tariff hike proposals outright because an increase of Tk 100 in electricity bills would raise house rents by Tk 500. Any tariff hike will hit hard the poor. A fresh hike in power price would also push up prices of essential commodities. The power ministry's role in the move of raising power price has proved that the government is trying to protect the interest of the rich. The rural consumers are now paying the highest rate of electricity. Some 9 lakh rural people consume electricity worth Tk 55 crore, but they pay only Tk 98 crore. This is a great mockery. The government must decrease the power price for the rural people instead of raising it.
Increase in production cost will obviously increase the price of power. So, the government should address the problems, including corruption in administration, high system losses, delays in completion of new plants, low plant efficiencies, erratic power supply, electricity theft, blackouts, and shortages of funds for power plant maintenance, in the electric power sector. Again, dishonest officials and employees of the PDB and other agencies are swindling huge amount of money annually from the power and energy sector under the cover of system loss and using false vouchers against payment of utility bills.
The Bangladesh Rural Electrification Board (BREB), however, had proposed a 12.58 per cent hike. But after a scrutiny of the BREB proposal, the BERC conceded to a 3.48 per cent increase. Although the government says power tariff hike will improve the performance of the authorities concerned in power sector, another round of power price hike would aggravate the sufferings of the people. The commission should take a decision keeping the interests of the consumers in mind. Cancellation of the government's plan for a fresh hike in power price and of the existing "minimum billing system" is the demand of common people. A restructure of the slabs setting the lowest slab at 0-25 units in place of 0-75 units for taking low-cost electricity may be an answer to the problem.
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