The Bangladesh Energy Regulatory Commission (BERC) has given over 50 licences to the operators of captive and stand-by power generators while process of issuing about 125 more licences are also underway, official sources said.
The regulatory authority is, at the same time, thinking to reduce the existing licence fees on captive and stand-by generators to be used for industrial and business purposes, following a demand for exemption of such levy from the country's top businesses, they said.
"We have already issued more than 50 licences to the operators of captive or stand-by power generators while about 100 to 125 applications seeking the licences are still pending with us," the BERC Chairman Golam Rahman told the FE.
The extended deadline for obtaining or seeking licences from the BERC for captive power generators expires August 31.
The BERC chief also said that his Commission was working on the possible reduction of licence fees on captive and stand-by generators.
"We are setting necessary criteria for lowering the rate of licence fees on captive and stand-by electricity generators used by industrial units following appeals made by various trade bodies and stakeholders," Mr. Golam Rahman said.
He further said after preparing a concrete proposal on the reduction of such licence fees, the BERC will place it before the Ministry of Law for its consent.
The Commission would take decision regarding the reduction of licence fees after the issuance of the licences to the users concerned.
Responding to a query, he also said: "We are actively considering reducing the licence fees at reasonable levels in line with the appeals made by the users concerned,"
On January 10 last, the BERC served a public notice, making it mandatory for the users to obtain licences for the captive/stand-by generators having over 1.0 megawatt (MW) capacity.
Initially, the Commission set April 30 as the deadline for obtaining such licences, but later was extended twice.
The BERC has imposed such licence fees in accordance with the sections 27 and 28 of the Bangladesh Energy Regulatory Commission Act 2003, officials said.
According the BERC provision, the users of captive or stand-by generators are to pay licence fees in the range between Tk 0.5 million and Tk 2.5 million per generators depending on their generation capacity.
The country's major trade bodies and business associations have been demanding the withdrawal of such licence fees.
After issuance of the BERC's public notice, leaders of the country's major business associations and trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), in a joint statement strongly opposed the imposition of such licence fees.
Presidents of the International Chamber of Commerce (ICC)-Bangladesh, Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka Chamber of Commerce and Industry (DCCI), Chittagong Chamber of Commerce and Industry (CCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textiles Mills Association (BTMA), and the Bangladesh Aushad Shilpa Samity (BASS) were also the signatories to the statement.
Expressing their deep concern at the BERC's public notice, the business leaders also urged the government to immediately intervene and exempt the users of captive/stand-by generators from payment of large amount of licence fees by withdrawing and modifying the public notice.
They, however, suggested that the Commission should amend the relevant provision of the regulations for the sake of the country's industrial growth.
