BERC raises power tariff by 6.96pc
FE Report | Friday, 14 March 2014
Bangladesh Energy Regulatory Commission (BERC) announced Thursday a fresh hike in electricity tariff at the retail level by 6.96 per cent on an average with retrospective effect from March 1.
The energy regulator declared the tariff hike 'abruptly' avoiding the tradition of holding a formal press briefing for making such an announcement.
The commission did not hike electricity tariff for 'life-line' residential subscribers, who use up to 50 units (kilowatt-hour) of electricity per month.
The tariff for irrigation would also remain unchanged.
"The electricity tariff has been increased to adjust the operational losses of state-owned power entities and distribution companies," BERC Chairman AR Khan said.
The commission considered economic impacts on different institutions, subscribers including those from poor and middle classes, agriculture and the overall socio-economic condition of the country before announcing the electricity tariff hike, he said.
Thursday's tariff hike was the first of the incumbent government and seventh since 2010.
The commission had last hiked the electricity tariff on September 20, 2012.
The energy regulator set six slabs on power use of household subscribers in addition to the 'lifeline' one.
Apart from the lifeline one, the lowest slab is 1-75 units of electricity and the highest is above 600 units.
The commission has fixed uniform electricity tariff rates for all residential subscribers--under REB or any other company--from the second slab to the sixth slab.
With Thursday's hike the average retail electricity tariff for all subscribers of Bangladesh Power Development Board (BPDB), Dhaka Power Distribution Company (DPDC), Dhaka Electric Supply Company Ltd (DESCO) and West Zone Power Distribution Company Ltd (WZPDCL) who will use up to 75 units of power has been raised to Tk 3.53 per unit from the previous rate of Tk 3.33 per unit.
For the subscribers of the Rural Electrification Board (REB) using up to 75 units of electricity the new tariff rate will be Tk 3.87 per unit on an average from the previous rate of Tk 3.74 per unit.
For use of electricity under the second slab of 76-200 units, the new electricity tariff for all the subscribers across the country would be Tk 5.01 per unit.
Earlier the electricity tariff for the second slab was Tk 4.73 per unit for all subscribers other than those of the REB.
For REB subscribers, the tariff under the second slab was Tk 4.60 per unit on an average.
Under the third slab of 201-300 units the new electricity tariff for all subscribers across the country will be Tk 5.19 per unit.
Earlier the electricity tariff for the third slab was Tk 4.83 per unit for all other than those of the REB.
For REB clients the tariff under the third slab was Tk 4.760 per unit on an average.
For consumption of electricity under the fourth slab of 301-400 units the new electricity tariff for all will be Tk 5.42 per unit.
Earlier the electricity tariff for the fourth slab was Tk 4.93 per unit for all other than those of the REB. For the REB clients the tariff under fourth slab was Tk 7.10 per unit on an average.
Under the fifth slab of 401-600 units the new electricity tariff for all will be Tk 8.51 per unit. The earlier tariff under the fifth slab was Tk 7.98 per unit for all other than those of the REB. For the REB clients the tariff under the fifth slab was Tk 7.40 per unit on an average.
Under the sixth slab above 600 units the new tariff for all across the country including those of the REB will be Tk 9.93 per unit instead of the previous rate of Tk 9.38 per unit.
For small industries the electricity tariff at a flat rate has been increased to Tk 7.42 per unit from the previous Tk 6.95 per unit for all across the country.
The tariff for small industries during off-peak hours has been increased to Tk 6.64 per unit from the previous rate of Tk 5.96 per unit and for peak-hours the tariff has been set at Tk 9.0 per unit against the previous rate of Tk 8.47 per unit.
For commercial and office consumers the electricity tariff has been increased to Tk 9.59 per unit at a flat rate from the previous rate of Tk 9.0 per unit for all consumers across the country.
The tariff for commercial and office consumers during off-peak hours has been increased to Tk 8.16 per unit from Tk 7.22 per unit. For peak hours the tariff has been kept unchanged at Tk 11.85 per unit.
The flat rate of electricity tariff under medium pressure (11 kilo-volt) has been increased to Tk 7.32 per unit from Tk 6.81 per unit for all across the country.
The tariff under medium pressure (11 kv) during off-peak hours has been increased to Tk 6.62 per unit from Tk 5.96 and for peak hours the tariff has been kept unchanged at Tk 9.33 per unit.
The power tariff at a flat rate under high pressure (33 kv) has been increased to Tk 7.20 per unit from Tk 6.48 for all across the country.
The tariff under high pressure (33 kv) for off-peak hours has been raised to Tk 6.55 per unit from Tk 5.87 per unit and for peak hours it has increased to Tk 9.28 per unit from Tk 9.14.
The power tariff at a flat rate under very high pressure (132 kv) has been increased to Tk 6.96 per unit from Tk 6.16 per unit for all across the country. The tariff under very high pressure (132 kv) during off-peak hours has been raised to Tk 6.35 per unit from Tk 5.57 and for peak hours to Tk 9.19 per unit from Tk 8.67.
For street lights and water pumps the power tariff at a flat rate has been increased to Tk 6.93 per unit from Tk 6.48.
"Despite protests from different quarters this hike in power tariff reflects the desperation of the government having little concern about the common people," energy expert Professor Badrul Imam said.
Oil-fired rental and quick rental power plants caused the hike in electricity tariff, he said.
"It is farcical," said Professor Abu Mohammad of Oil, Gas, Port Protection Committee.
"The BERC has staged a drama by holding public hearings to implement the government's previously-taken decision on power tariff hike," he said.
There was no logic to continue cooperating with the BERC, if it continued implementing the government's set agenda, said Mr Mohammad.
He also said the tariff hike was made to accommodate extension of tenures of rental and quick rental power plants as electricity generation cost did not increase recently, he added.
"We are aggrieved and shall protest it," said Adviser of the Consumers Association of Bangladesh Professor Shamsul Alam.