The technical evaluation committee of Bangladesh Energy Regulatory Commission (BERC) has recommended a hike in retail level electricity tariff by 6.66 per cent for BPDB consumers and by 7.51 per cent for WZPDC consumers.
The committee of the energy regulator gave its opinion on the hike in electricity tariff during public hearings over the proposals of state-owned Bangladesh Power Development Board (BPDB) and West Zone Power Distribution Company (WZPDC) Tuesday.
BPDB sought the hike by 15.50 per cent arguing that currently the cost of per unit (1 kilowatt hour) electricity supply of the entity is Tk 6.93 but the sale price is Tk 6.0 per unit resulting in a loss of Tk 0.93 per unit.
The WZPDC sought the retail level electricity tariff hike by 8.59 per cent.
It reasoned that at present per unit electricity supply cost is Tk 6.447 per unit and sale price is Tk 4.41 per unit, resulting in a loss of Tk 2.037 per unit.
BERC will announce the range of the electricity tariff hike on completion of public hearings, BERC Member Dr Selim Mahmud said.
Different trade and rights groups protested Tuesday the move of electricity tariff hike.
CAB adviser Professor Shamsul Alam, on the other hand, urged the government to reduce the electricity tariff considering consumers' woes.
Dhaka Power Distribution Company (DPDC) and Dhaka Electric Supply Company (DESCO) would hold public hearings on their proposed tariff hikes today (Wednesday) at the BERC office.
The last public hearing on the electricity tariff hike would be held tomorrow (Thursday) and the Rural Electrification Board (REB) will justify the measure. The announcement of fresh electricity tariff hike may be made by end of March but the hike might be with retrospective effect from March 1, 2014, said sources.
Since 2009 the BERC increased retail electricity tariff six times with the latest in September 2012.
The energy regulator hiked average bulk and retail electricity tariff by 16.92 per cent and 15 per cent respectively during the latest hike in September 20, 2012.
After that hike all the electricity distribution companies again submitted proposals for further hike in electricity tariff in December 2012.
The commission also had held public hearings on the tariff hike proposals and decided to increase the tariff by 5.0 per cent on an average.
But the decision was halted following request from Prime Minister Sheikh Hasina to avoid public criticism before the general election.
The technical evaluation committee of the BERC then had recommended a hike in electricity tariff by 3.30 per cent for DPDC and 3.65 percent for DESCO consumers.
DESCO had sought to raise the power tariff at the consumer level by an average of 11.69 per cent while the DPDC proposed 11.31 per cent increase.
The BERC evaluation committee had recommended 4.84 per cent and 4.15 per cent hikes in retail electricity tariffs for the consumers of BPDB and WZPDC.
The BPDB had sought 12 per cent hike in retail electricity tariff, while the WZPDC had sought 9.59 per cent hike.
The BPDB has argued that it will incur a loss of Tk 5.16 billion this year if the tariff is not hiked.
The commission, however, opposed retail tariff hike proposal of the REB saying the REB did not provide accurate information.
The cost of electricity has been rising as the government adopted short-term measures of installing dozens of high-cost diesel and furnace oil-fired rental power plants to ease the country's mounting electricity crisis.
It averaged Tk 2.62 per unit in fiscal 2009-10.
