BERC body turns down DPDC tariff hike plea

The retail-level electricity tariff for majority of the capital's residents might not increase further as the technical evaluation committee of Bangladesh Energy Regulatory Commission (BERC) turned down on Thursday the tariff hike proposal of the state-run Dhaka Power Distribution Company Ltd (DPDC) at a public hearing.
The evaluation committee rejected the tariff hike plea of the DPDC. The company was already making a profit of Tk 810 million (81 crore) and its profit could increase further to Tk 2.91 billion (291 crore), if the tariff was hiked.
The BERC committee, however, recommended a hike by 3.09 per cent in the retail-level electricity tariff for the state-run Bangladesh Power Development Board (BPDB). The recommendation came in consideration of the growing spending on bulk electricity tariff and an increase in their power transmission costs.
The BERC, however, will take the final decision on the tariff hike proposals by February 10 next.
The public hearings were held at the TCB (Trading Corporation Bangladesh) auditorium with BERC Chairman AR Khan in the chair.
The DPDC sought 17.85 per cent hike in the retail-level electricity tariff for its consumers. It argued that its financial position was already in the red and the existing loss would increase further, if the tariff was not hiked.
The DPDC network covers most of the Dhaka city corporation areas apart from Narayanganj town, Siddhirganj, Fatullah and Mokterpur under Narayanganj district.
The DPDC does not cover Gulshan, Banani, Uttara, Baridhara and Mirpur areas, which are under the jurisdiction of another state-run entity-Dhaka Electric Supply Company Ltd (DESCO).
The BPDB sought a hike by 18.12 per cent from its existing retail-level electricity tariff to cope with the mounting spending on bulk electricity tariff and power transmission.
It sought subsidy from the government, if the tariff was not hiked.
Energy Adviser of the Consumers' Association of Bangladesh Dr M Shamsul Alam sharply criticised the faulty accounting of the DPDC during the public hearing.
He alleged that the BPDB was purchasing electricity from expensive oil-fired rental and quick rental power plants keeping the low-cost power plants idle.
Stakeholders like business bodies, traders and left-leaning political parties also opposed the retail-level tariff hike proposals from the two state-run entities.
DPDC Director Asaduzzaman and BPDB additional director (commercial operation) Md Taslim Hossain placed their respective tariff hike proposals at the public hearing.
Two other public hearings on the retail-level tariff-hike proposals of DESCO and Rural Electrification Board (REB) will be held on Sunday.
azizjst@yahoo.com