Yet another hike in tariff awaits the poor power subscribers.
The power division has already advised the power distribution companies to submit their respective proposals on the revised power tariff to the power and energy sector regulator -- the Bangladesh energy regulatory commission (BERC).
In fact, the government came under pressure in December 2012 -- three months after a 15 per cent hike in power tariff -- from power distribution companies for further increase in tariff.
The BERC also arranged public hearing on the tariff-hike proposals at an average rate of 11 per cent. But the regulator recommended a 5.0 per cent hike, on an average.
However, the government thought it wise not to put into effect yet another increase in power rates particularly when next general elections was not far away. Five state-owned power entities which had estimated their subsidy requirement at Tk 13 billion at that time had go by the decision of the government.
Since the elections are now over the government does not need to worry much about the reaction of the electorates in the event of any hike in the rates of utility services, at least, until the next polls.
But what will be the likely response of the power subscribers? Of course, it will not be a palatable one for the government. But as usual after an initial hostile reaction, they would accept the tariff hike as a fait accompli.
Yet the rate hike will be a very important factor for the consumers for the same would not only inflate their monthly power bill but, in all probability, will also make their life miserable by fuelling inflation which is now hovering around 8.0 per cent.
Last time the power entities wanted an average 11 per cent hike in power tariff and the BERC recommended 5.0 per cent. But the individual proposals for tariff hike by the public sector power entities this time are likely to include the demands for greater hikes than what were proposed by them last time citing the greater time-lag as the main reason. And, in that case, the BERC recommendation will also be on the higher side.
There is no denying that the power tariff has gone through substantial change during last five years or so. But it is equally true the power situation has improved. At the moment there is no load-shedding. All the power units now generate more than 6000 megawatt (MW) which is sufficient to meet demand during this dry season. However the overall generation capacity of all the units now stands at about 10000 MW.
But it remains to be seen what happens during the next summer when the demand for power peaks and the generation finds it difficult to cope with. If load shedding returns with previous severity, any power tariff hike will only make the resentment of the power subscribers even more intense.
It does appear that with the liquid fuel-fired rental power plants dominating the generation scenario, the power subscribers will always remain vulnerable to intermittent power tariff hike. Indications are galore that rental power plants, which have triggered lots of controversies, would continue to supply a substantial volume of power to the national grid for some more years. The government has been trying hard to implement a few large power plants in the public sector, but the progress in this respect is well below the expectation.
The slow progress, however, is taking an economic toll on the power subscribers, domestic or otherwise. The power tariff would have increased even in a stable power situation. But in that case the rate of hike would have been lower and within a tolerable limit of the power subscribers.
The authorities need to seek alternatives to hiking power rates frequently. There must be a few. A sincere and honest search for the same might help them reach the goal.
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