BERC weighing varying opinions on power rate hike

The energy regulator is now weighing opinions of various stakeholders before announcing a hike in electricity tariff for consumers across the country, a top official said.
"An upward adjustment of electricity tariff is necessary considering the increase in average electricity generation costs," Bangladesh Energy Regulatory Commission (BERC) Chairman AR Khan told the FE.
He said the BERC will announce the new electricity tariff after reviewing opinions placed by different stakeholders including consumers and rights groups during public hearings and recommendations of the technical evaluation committee of the BERC on the tariff hike proposals of electricity distribution companies.
The BERC has already completed public hearing on power tariff hike proposals mooted by all the five state-owned electricity distribution companies.
The Bangladesh Power Development Board (BPDB) sought the retail electricity tariff hike by 15.50 per cent arguing that currently per unit (1 kilowatt hour) electricity generation cost of the entity is Tk 6.93 but the sale price is Tk 6.0 per unit resulting in a loss of Tk 0.93 per unit.
The West Zone Power Distribution Company (WZPDC) sought a hike of the retail level electricity tariff by 8.59 per cent.
It argued that at present, per unit electricity production cost was Tk 6.447 per unit as against the sale price at Tk 4.41 per unit, resulting in a loss of Tk 2.037 per unit.
The Dhaka Power Distribution Company (DPDC) pleaded for a 23.50 per cent hike in retail electricity tariff and the Dhaka Electric Supply Company (DESCO) sought 15.90 per cent hike.
The Rural Electrification Board (REB) sought an average increase of electricity tariff by 12.58 per cent to reduce its losses.
Different consumer groups, trade bodies and rights groups protested the tariff hike proposals during public hearings and threatened to launch massive demonstration if the electricity tariff was hiked.
The Bangladesh Nationalist Party also protested the electricity tariff hike move.
After reviewing tariff hike proposals of the electricity distribution companies, the technical evaluation committee of the BERC has, however, recommended a hike in retail level electricity tariff by 6.66 per cent for the BPDB consumers and by 7.51 per cent for the WZPDC consumers.
The committee recommended a hike in retail power tariff by 6.03 per cent for the subscribers of the DPDC and by 2.01 per cent for the consumers of the DESCO.
The technical evaluation committee recommended an average hike by 3.48 per cent for the REB consumers.
The announcement of fresh electricity tariff hike might come by end of March but the tariff hike might be given retrospective effect from March 1, 2014.
Since 2009, the BERC increased retail electricity tariff six times with the latest in September 2012.
The energy regulator hiked average bulk and retail electricity tariff by 16.92 per cent and 15 per cent respectively during the latest hike in September 20, 2012.