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Retail power tariff hike

BERC likely to give decision by Jan 30

FE REPORT | January 09, 2023 00:00:00


Unlike on previous occasions, the decision on fixing new electricity tariff at retail level is set to come within one month of holding public hearing.

The Bangladesh Energy Regulatory Commission (BERC) is intending to announce its decision on retail power-tariff hike by January 30, as the existing commission's tenure will expire on the day. BERC Chairman Md Abdul Jalil said it during the concluding session of the day-long public hearing on Sunday.

The BERC arranged the hearing at BIAM auditorium in the city on retail power tariff hike proposals by the distribution companies and wheeling charge hike proposal by the PGCB.

According to the BERC rule, the commission has 90 days after holding a public hearing to announce new tariff rate.

Earlier, the commission announced its decision on new tariff at the fag-end of the 90-day timeline.

Like the previous occasions, businessmen and rights groups, opposed the retail power tariff hike proposals of the state-run power distribution companies on Sunday.

Any hike in power tariff would escalate prices of essentials in the already inflated market and thus affect livelihood of the commoners, they opined.

The BERC Technical Evaluation Committee (TEC), however, opined for an average 15.43 per cent hike.

The BERC would fix the rate of retail tariff hike - whatever deemed suitable, said the commission chairman.

"It will be difficult to make everyone happy."

But the decision would come in a way that the consumers do not get affected that much and the utility providers can also continue their job, Mr Jalil added.

Professor M Shamsul Alam, Energy Adviser of the Consumers Association of Bangladesh (CAB), demanded to reduce unnecessary costs of the electricity companies to avoid any tariff hike.

Mr Alam also inquired whether or not the state-run Petrobangla or Bangladesh Petroleum Corporation (BPC) would be able to provide necessary fuel, like natural gas and petroleum products, based on which the companies sought to hike power tariff.

The CAB leader accused Petrobangla of 'cheating the consumers' to raise natural gas tariff by 23 per cent in last June.

Petrobangla had projected to re-gasify around 684.84 million cubic feet per day (mmcfd) of liquefied natural gas (LNG) in 2022 to raise tariff. But its LNG re-gasification was much below than the projection.

Mr Alam also wanted to know the amount of revenue, which could be saved due to lower-than-expected LNG import.

He opposed charging rents on electricity meters by the utility providers, which was also supported by the BERC chairman during the hearing.

Overall cost of doing business would increase, if the electricity tariff is hiked at retail level, said a representative of compressed natural gas (CNG) filling stations' association.

All power distribution companies, including the Bangladesh Power Development Board (BPDB), Dhaka Power Distribution Company (DPDC), Dhaka Electric Supply Company (DESCO), West-Zone Power Distribution Company (WZPDC), Northern Electricity Supply Company Ltd (NESCO), and Rural Electrification Board (REB), raised their voices in favour of raising retail electricity tariff - following the commission's hike in bulk power tariff in November 2022.

The BERC then hiked the weighted average bulk power tariff by 19.92 per cent to Tk 6.20 per unit (1 kilowatt-hour) from the previous Tk 5.17 per unit - with effect from December 2022 - after the 23 per cent hike in natural gas tariff in June 2022.

The distribution companies sought to hike retail electricity tariff by around 25 per cent on an average.

The PGCB sought to raise wheeling charges for 33 kilovolt (kv), 132 kv and 230 kv levels by an average of around 120 per cent to Tk 0.63 from the existing Tk 0.28.

The BERC TEC revealed that the distribution companies would get a total of around Tk 80 billion, if the average retail power tariff is hiked by 15.43 per cent to Tk 8.23 per unit from the existing Tk 7.13 per unit.

The TEC recommended a 13.19 per cent hike in the PGCB's wheeling charge.

The commission previously raised the average retail electricity tariff in February 2020 by 5.3 per cent, or Tk 0.36 to Tk 7.13 per unit from the previous Tk 6.77 per unit. It also raised the PGCB's wheeling charge in March 2020.

BERC members Abu Faruq, Maqbul-e-Elahi Chowdhury, Bazlur Rahman and Quamruzzman also spoke on the occasion, where top officials of the utility providers tried to justify their tariff hike proposals.

Azizjst@yahoo.com


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