BERC to set criteria for reducing licence fees
S M Jahangir | Friday, 25 July 2008
The Bangladesh Energy Regulatory Commission (BERC) will soon come up with a proposal for reducing the existing licence fees on the use of captive and stand-by generators above 1.0 megawatt (MW) capacity of industrial units.
"We are working out the necessary criteria for lowering the rate of license fees on captive and stand-by electricity generators used by industrial units following appeals made by various trade bodies and stakeholders," BERC Chairman Golam Rahman told the FE Wednesday.
He further said after preparing a concrete proposal on the reduction of such licence fees, the BERC will place it before the Ministry of Law for vetting.
The BERC chief also mentioned that the Commission would take a decision regarding the reduction of licence fees after the expiry of the timeframe set for obtaining licenses by the users concerned.
According to the provision, the users of captive and stand-by generators are to pay license fees varying from Tk 0.5 million to Tk 2.5 million per unit depending on their generation capacity
The BERC has imposed such licence fees in accordance with the sections 27 and 28 of the Bangladesh Energy Regulatory Commission Act 2003, he noted
Earlier, the BERC vide Public Notice No. BERC/Admin-115/1427 dated 10th January 2008 made obtaining of licenses for the use of captive and stand-by generators beyond 1 MW mandatory for all concerned.
Initially, the Commission set April 30 as the deadline for obtaining such licences, but it has already extended the deadline twice.
Initially the deadline for taking the licence was extended until June 30 and it has later been extend up to August 31, following some technical problems regarding the issuances of letters to the parties concerned, the BERC sources said.
"So far, a good number of industrial enterprises using captive or stand-by electricity generators have applied for licences," the BERC chairman said.
Responding to a query, he also said: "We are actively considering reducing the licence fees to a reasonable level in line with the appeals made by the users concerned,"
Earlier, leaders of the country's major business associations and trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), in a joint statement strongly opposed the imposition of such licence fees.
Expressing resentment at BERC's public notice, the business leaders urged the government to immediately intervene and exempt the users of own captive and stand-by generators from paying such large sums as license fees.
They, however, suggested that the Commission should amend the relevant provision of the regulations for the sake of the country's industrial growth.
The trade body leaders said the power shortage in the country is well-known. But for the use of captive and stand-by generators, many of the larger industries would either have to close down or suffer substantial production losses.
Some of the trade bodies and business associations have already appealled to the BERC, seeking exemption of such license fees.
"We are working out the necessary criteria for lowering the rate of license fees on captive and stand-by electricity generators used by industrial units following appeals made by various trade bodies and stakeholders," BERC Chairman Golam Rahman told the FE Wednesday.
He further said after preparing a concrete proposal on the reduction of such licence fees, the BERC will place it before the Ministry of Law for vetting.
The BERC chief also mentioned that the Commission would take a decision regarding the reduction of licence fees after the expiry of the timeframe set for obtaining licenses by the users concerned.
According to the provision, the users of captive and stand-by generators are to pay license fees varying from Tk 0.5 million to Tk 2.5 million per unit depending on their generation capacity
The BERC has imposed such licence fees in accordance with the sections 27 and 28 of the Bangladesh Energy Regulatory Commission Act 2003, he noted
Earlier, the BERC vide Public Notice No. BERC/Admin-115/1427 dated 10th January 2008 made obtaining of licenses for the use of captive and stand-by generators beyond 1 MW mandatory for all concerned.
Initially, the Commission set April 30 as the deadline for obtaining such licences, but it has already extended the deadline twice.
Initially the deadline for taking the licence was extended until June 30 and it has later been extend up to August 31, following some technical problems regarding the issuances of letters to the parties concerned, the BERC sources said.
"So far, a good number of industrial enterprises using captive or stand-by electricity generators have applied for licences," the BERC chairman said.
Responding to a query, he also said: "We are actively considering reducing the licence fees to a reasonable level in line with the appeals made by the users concerned,"
Earlier, leaders of the country's major business associations and trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), in a joint statement strongly opposed the imposition of such licence fees.
Expressing resentment at BERC's public notice, the business leaders urged the government to immediately intervene and exempt the users of own captive and stand-by generators from paying such large sums as license fees.
They, however, suggested that the Commission should amend the relevant provision of the regulations for the sake of the country's industrial growth.
The trade body leaders said the power shortage in the country is well-known. But for the use of captive and stand-by generators, many of the larger industries would either have to close down or suffer substantial production losses.
Some of the trade bodies and business associations have already appealled to the BERC, seeking exemption of such license fees.