BERC eyes changes in laws to cut licence fees on captive, stand-by generators

FE Team | Published: September 29, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

S M Jahangir
The Bangladesh Energy Regulatory Commission (BERC) is considering amendments to its existing regulations to help cut licence fees on use of captive and stand-by generators by industrial operators, as sought by the country's major trade bodies.
'We'll have to make some necessary changes in the existing regulations aiming to help cut the licence fees on use of captive and stand-by generators,' BERC Chairman Golam Rahman has told the FE.
The Commission is actively considering it following the demands raised by various trade bodies including business associations in this regard, the BERC chief said.
He also said the Commission has already formed a committee, headed by a BERC member, to work on the possible cut in licence fees. The committee is expected to make its recommendations to the Commission shortly, the BERC chairman added.
He further said after receiving the recommendations from the committee, the BERC will place a concrete proposal in this connection to the ministry of law for its vetting.
The BERC has imposed the licence fees in accordance with the sections-27 and 28 of the Bangladesh Energy Regulatory Commission Act 2003, officials said.
Under the BERC provision, the users of captive and stand-by generators are required to pay licence fees ranging between Tk 0.5 million (5 lakh) and Tk 2.5 million per generator depending on their generation capacity
The country's major trade bodies including business associations have long been demanding - either jointly or separately - withdrawal of such licence fess or cutting them drastically.
Earlier in a public notice, the BERC made mandatory, obtaining of operating licences by users of captive and standby generators having the generation capacity of one megawatt and above.
After that, the country's major business associations including the apex trade body - FBCCI -- issued a joint statement strongly opposing imposition of the licence fees.
Expressing their deep concern at the BERC public notice, leaders of the country's top trade bodies urged the government to immediately intervene in it. They urged the government to exempt the users having their own captive and stand-by generators from payment of a huge amount of licence fees either by withdrawing or reviewing the public notice.
A top BERC official, however, said the Commission will take a decision on this issue after the completion of issuance of the operating licences.
Recently, the BERC extended the deadline for obtaining the licences by two more months until October 31 next following poor response from the users concerned.
The Commission received around 275 applications for licences until September 25 last. Of them, the Commission has already issued licences to 75 operators while 200 other applications are remaining pending with the regulator, said the official.
Terming the number 'not satisfactory', Mr. Golam Rahman said a significant number of users are yet to apply.