All about AC use and CNG price rise
Thursday, 8 April 2010
Shahiduzzaman Khan
The country's energy regulator prohibited the use of air conditioners (AC) during peak hours -- from 6.0pm to 11pm daily until further notice. This is an unprecedented move by the regulator.
While announcing the restriction, the regulator said it is applicable for all residential units, private and public offices, businesses and shops-excepting hospitals, restaurants and hotels. It also stated that AC temperature regulators could not be lowered to less than 25 degrees centigrade during off-peak hours.
However, the directive issued by the energy regulator - Bangladesh Energy Regulatory Commission (BERC) - is yet to demonstrate any favourable impact on the overall load shedding situation in the capital. Load shedding has rather continued to worsen in the city with no immediate remedy in sight. A newspaper survey says that the use of AC is continuing unabated in most of the residential houses and public places.
A BERC source could not give any idea of how many kilowatts could be saved after the directive was issued. No media could gather an estimate of how much electricity could be saved. However, it has been reported in the media that demand for power in the capital increases by 150MW during the hot days. Only 25MW of it is caused due to running of fans, but the remaining is due to use of AC.
On its part, BERC has not been able to mobilise an adequate number of inspectors or officials to enforce its directive. With limited work force, it is impossible for the regulator or the Power Development Board (PDB) to go for regular visits from door to door for checking. If that is the situation, then why did the authorities concerned go for issuing such an 'improper' directive? Why did not the enforcement issue come at the first place? Why is not the Power Division organised?
There is hardly any disagreement with the PDB chairman when he, as the reports said, said things would change if everyone remains aware of consuming power. But the matter is that air conditioners are mostly used by the affluent section of the society. No warning was earlier issued apparently targeting this section of people. BERC said anyone violating peak-hour AC use ban would be fined or given prison term for a minimum period of three months. Such a warning certainly hurts those consumers who regularly pay electricity bills and do not indulge in any wrongdoing. Undeniably, all consumers should be law-abiding. A sense of discipline should prevail among all citizens. But that does not necessarily mean that the authorities would put them to test in such a 'rough and tough' way!
The long history of PDB suggested that it was never an efficient and clean organisation. It sustained colossal losses years after years due to rampant irregularities and mismanagement by a section of its officials and employees. Petty meter readers of PDB were earlier reported to have turned themselves into millionaires in just a few years. They became newspaper headlines on many occasions, particularly during the last caretaker government. Staggering losses suffered by the PDB were passed on the consumers by hiking power tariffs most frequently. When general consumers are made to suffer for inefficiencies in the power sector, how can the authorities concerned threaten jail term and a fine for violation of the directive banning the use of AC during peak hours? It is ridiculous!
Then again, a 'surprise but hard' recommendation about the prices of natural gas and power was announced the other day by an important functionary of the government. At a meeting with the energy officials this week, it was, thus, noted by the concerned functionary that Bangladesh would have no option but to go for open-pit coal-mining to solve the 'biggest crisis' of energy. The suggestion was also made then for quadrupling the price of compressed natural gas (CNG). Furthermore, the government, as the indications given at that meeting suggest, is reportedly considering an upward revision of electricity to 'lower the burden of subsidies on it.'
But the fact remains that the price of CNG gas was doubled only last year; the power tariff was also hiked again this year. There were flurries of gas and power tariff hikes over the years by the successive governments showing the same old reason - to rid the state-owned entities of the burden of colossal losses. It has also to be considered in this connection that the burden of the people has become otherwise heavier over the years, without any improvement whatsoever in the dependability of power supply system. If there is any upward revision of CNG and electricity prices at this stage, it would be an added salt to their injury. Over the years, the public transport system has come to be dependent on CNG and a quadruple rise in its price is most likely to result in transport fare going further up.
For the present, Bangladesh faces a daily shortage of up to 300 million cubic feet (mmcft) of gas and 1,500 megawatts of electricity. The government shut down five fertiliser factories last week to save around 250 mmcft a day in the face of acute power crisis. Gas is the main source for power generation in Bangladesh. The electricity and gas crises have, indeed, put its nearly $100 billion economy at risk of contraction. These may cut the country's much needed export earnings.
The circular, banning the use of AC during peak hours and the suggestion, recommending quadruple rise in CNG and another hike in power tariff, do otherwise reflect desperate moves by the authorities to 'save' the situation. But such moves without hard actions with some visible impact on the ground-level realities relating to power and gas supplies, are unlikely to give the right signals at this stage. Rather, the government should try to remedy the situation by fixing the priorities in the right direction.
Successive governments have allowed inefficiency and indolence to continue for long, in an uninterrupted sequence, in power and energy sector. The incumbent government should try to address such issues on a priority and in a befitting manner. Otherwise, the restriction on the use of air-conditioners during the peak-hours will serve no credible and, thus, worthwhile purpose. Hence, a battle line should be drawn, more in actions than in words, to address the energy crisis in short-, medium- and long-term.
szkhan@dhaka.net
The country's energy regulator prohibited the use of air conditioners (AC) during peak hours -- from 6.0pm to 11pm daily until further notice. This is an unprecedented move by the regulator.
While announcing the restriction, the regulator said it is applicable for all residential units, private and public offices, businesses and shops-excepting hospitals, restaurants and hotels. It also stated that AC temperature regulators could not be lowered to less than 25 degrees centigrade during off-peak hours.
However, the directive issued by the energy regulator - Bangladesh Energy Regulatory Commission (BERC) - is yet to demonstrate any favourable impact on the overall load shedding situation in the capital. Load shedding has rather continued to worsen in the city with no immediate remedy in sight. A newspaper survey says that the use of AC is continuing unabated in most of the residential houses and public places.
A BERC source could not give any idea of how many kilowatts could be saved after the directive was issued. No media could gather an estimate of how much electricity could be saved. However, it has been reported in the media that demand for power in the capital increases by 150MW during the hot days. Only 25MW of it is caused due to running of fans, but the remaining is due to use of AC.
On its part, BERC has not been able to mobilise an adequate number of inspectors or officials to enforce its directive. With limited work force, it is impossible for the regulator or the Power Development Board (PDB) to go for regular visits from door to door for checking. If that is the situation, then why did the authorities concerned go for issuing such an 'improper' directive? Why did not the enforcement issue come at the first place? Why is not the Power Division organised?
There is hardly any disagreement with the PDB chairman when he, as the reports said, said things would change if everyone remains aware of consuming power. But the matter is that air conditioners are mostly used by the affluent section of the society. No warning was earlier issued apparently targeting this section of people. BERC said anyone violating peak-hour AC use ban would be fined or given prison term for a minimum period of three months. Such a warning certainly hurts those consumers who regularly pay electricity bills and do not indulge in any wrongdoing. Undeniably, all consumers should be law-abiding. A sense of discipline should prevail among all citizens. But that does not necessarily mean that the authorities would put them to test in such a 'rough and tough' way!
The long history of PDB suggested that it was never an efficient and clean organisation. It sustained colossal losses years after years due to rampant irregularities and mismanagement by a section of its officials and employees. Petty meter readers of PDB were earlier reported to have turned themselves into millionaires in just a few years. They became newspaper headlines on many occasions, particularly during the last caretaker government. Staggering losses suffered by the PDB were passed on the consumers by hiking power tariffs most frequently. When general consumers are made to suffer for inefficiencies in the power sector, how can the authorities concerned threaten jail term and a fine for violation of the directive banning the use of AC during peak hours? It is ridiculous!
Then again, a 'surprise but hard' recommendation about the prices of natural gas and power was announced the other day by an important functionary of the government. At a meeting with the energy officials this week, it was, thus, noted by the concerned functionary that Bangladesh would have no option but to go for open-pit coal-mining to solve the 'biggest crisis' of energy. The suggestion was also made then for quadrupling the price of compressed natural gas (CNG). Furthermore, the government, as the indications given at that meeting suggest, is reportedly considering an upward revision of electricity to 'lower the burden of subsidies on it.'
But the fact remains that the price of CNG gas was doubled only last year; the power tariff was also hiked again this year. There were flurries of gas and power tariff hikes over the years by the successive governments showing the same old reason - to rid the state-owned entities of the burden of colossal losses. It has also to be considered in this connection that the burden of the people has become otherwise heavier over the years, without any improvement whatsoever in the dependability of power supply system. If there is any upward revision of CNG and electricity prices at this stage, it would be an added salt to their injury. Over the years, the public transport system has come to be dependent on CNG and a quadruple rise in its price is most likely to result in transport fare going further up.
For the present, Bangladesh faces a daily shortage of up to 300 million cubic feet (mmcft) of gas and 1,500 megawatts of electricity. The government shut down five fertiliser factories last week to save around 250 mmcft a day in the face of acute power crisis. Gas is the main source for power generation in Bangladesh. The electricity and gas crises have, indeed, put its nearly $100 billion economy at risk of contraction. These may cut the country's much needed export earnings.
The circular, banning the use of AC during peak hours and the suggestion, recommending quadruple rise in CNG and another hike in power tariff, do otherwise reflect desperate moves by the authorities to 'save' the situation. But such moves without hard actions with some visible impact on the ground-level realities relating to power and gas supplies, are unlikely to give the right signals at this stage. Rather, the government should try to remedy the situation by fixing the priorities in the right direction.
Successive governments have allowed inefficiency and indolence to continue for long, in an uninterrupted sequence, in power and energy sector. The incumbent government should try to address such issues on a priority and in a befitting manner. Otherwise, the restriction on the use of air-conditioners during the peak-hours will serve no credible and, thus, worthwhile purpose. Hence, a battle line should be drawn, more in actions than in words, to address the energy crisis in short-, medium- and long-term.
szkhan@dhaka.net