BERC to announce fresh hike in power tariff next week

FE Team | Published: September 02, 2012 00:00:00 | Updated: February 01, 2018 00:00:00

M Azizur Rahman
Country's energy regulator is set to announce a fresh hike in electricity tariff for all types of consumers by next week amid widespread criticism over the existing tariff rate and slab.
"The announcement of electricity tariff will come within next seven to ten days," Bangladesh Energy Regulatory Commission (BERC) Chairman Syed Yusuf Hossain told the FE Saturday.
The commission chairman did not say the rate of tariff hike and the date of introduction its but said it would consider woes of poor people, lower and middle income groups of people, without elaborating.
If hiked, it would be the eighth time of rise in electricity tariff under the incumbent government.
Of the total, four tariff hikes were announced during this calendar year until today.
"This is disastrous for the country's overall economy," said energy adviser of the Consumers' Association of Bangladesh Dr M Shamsul Alam.
The economy will not be able to absorb so many electricity tariff hikes within a short span of time, he said.
The previous hikes have already affected the people with spiralling prices, of other products especially electricity, said Mr. Alam.
The country's existing electricity tariff is already higher compared to many states of neighbouring India, he said.
A further hike in electricity tariff will fuel up inflation and reduce the purchasing capacity of the common people, Mr. Alam added.
"This time there will be a significant hike in bulk electricity tariff," BERC chairman said.
There will be an interim hike in retail electricity tariff, said Mr Hossain.
"We shall also introduce some new slabs in the electricity tariff system," he added.
The commission will order formation of an 'electricity fund' from the hikes in electricity tariff to meet a portion of future power sector development costs, he said.
State-owned Bangladesh Power Development (BPDB) has sought a 50 per cent hike in bulk electricity tariff.
It has sought an increase in bulk electricity tariff by Tk 2.01 per unit (1kWh) to Tk 6.03 from existing Tk 4.02 per unit.
The state-owned electricity distribution companies also sought similar hikes in retail electricity tariffs, said a BERC official.
State-owned Dhaka Power Distribution Company (DPDC) has sought a hike by 53.73 per cent, while the West Zone Power Distribution Company (WZPDCO) has sought the hike by 56.86 per cent.
Currently, per-unit electricity tariff at consumer end is Tk 5.10 on an average.
The BERC raised the average bulk electricity tariff to Tk 4.02 per unit from Tk 2.37 per unit.
A BERC official said through the previous hikes since March 2010, the commission has increased up to 69 per cent tariffs for different types of consumers.
But the withdrawal of slab system from February, 2012 has raised the electricity tariff of the consumers by almost double, a consumer alleged.
The commission will increase the number of tariff slabs from the existing three with the announcement of new electricity tariff, the commission chairman said.
The new slabs might be for the consumers using electricity from 0-75 units; 76-200 units; 201-300 units; 301-400 units; 401-500 units; 501-600 units; 601-700 units; 701-800 units and 801 units and above.
Currently, there are three electricity tariff slabs for the consumers using electricity 0-100 units; 101-400 units and 401 and above.