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BERC suggests 9.09pc rise in retail power tariff for DPDC consumers

Wednesday, 23 November 2011


An evaluation committee of the Bangladesh Energy Regulatory Commission (BERC) Tuesday suggested raising electricity tariffs by 9.09 per cent for the retail consumers in the city, living in the areas administered by the Dhaka Power Distribution Company (DPDC), reports UNB. At present, DPDC is charging Tk 3.16 per unit on average as retail tariff for its consumers. The BERC committee made the suggestion during a hearing on the tariff enhancement proposals of the DPDC. However, though the BERC evaluation committee made the said suggestion, the 3-member commission of the watchdog body, led by its chairman, will take the final decision after completion of a series of hearings on the tariff hike proposals of different power distribution companies. As part of the routine process, the BERC evaluation committee evaluates any proposal placed for hearing. The DPDC placed its proposal to raise retail power tariff by 1l.93 per cent earlier. The DPDC increased its retail power tariff by 5.0 per cent last February on an interim basis, following an order from the BERC. Concluding the hearing, BERC Chairman Syed Yusuf Hossain said that the commission would make its decision considering the overall conditions of the retail consumers. But the power distribution companies must improve the quality of their services for their consumers, he said. At present, DPDC and Dhaka Electric Supply Company Limited (DESCO) are the two state-owned distribution companies responsible for power distribution in the city. DPDC operates in Narayanganj, and a major portion of the south and central part of the city, while DESCO operates the north, including Mirpur, Gulshan, Uttara, Banani and Baridhara areas. DPDC consumers consume 27 per cent of electricity supplied to the city by the Power Development Board (PDB), the state-owned electricity generating agency. DPDC officials said that they had to spend Tk 270 million (27 crore) per month due to increase in bulk power tariffs by the PDB. That's why they need to increase the retail tariff. Otherwise, it will be difficult for DPDC to service the debt accrued to different donor agencies. The DPDC proposed raising electricity tariff to Tk 2.75 per unit from exiting Tk 2.60 for users of 100 units, while it wants to fix a price of Tk 3.87 per unit from present rate of Tk 3.46 for consumers using between 101-400 units. It also proposed fixing a price of Tk 6.65, up from Tk 5.93 per unit, for consumers using more than 401 units. For non-residential users, the DPDC proposed raising the tariff to Tk 3.75 per unit from Tk 3.35. The DPDC also proposed raising the tariff by between 11.76-12.43 per cent at different categories for small and commercial consumers. The DPDC also proposes to introduce a 2 per cent surcharge for defaulting on bills.