Bulk power consumers to pay 16pc more from Oct 1
Tuesday, 30 September 2008
FE Report
Electricity tariff for the bulk consumers will go up by 16 per cent on an average from October 1, 2008.
The Bangladesh Energy Regulatory Commission (BERC) Monday issued an order to this effect after completion of two and a half months process of reviewing the opinions of the stakeholders and conducting a public hearing on the hike in power tariff.
According to the order, state-run Bangladesh Power Development Board (BPDB) will be selling electricity to its bulk consumers at an average rate of Tk 2.37 per kilowatt-hour as against the previous rate of Tk 2.04/kilowatt-hour.
Chairman of the BERC Golum Rahman and its four other members Md. Khalilur Rahman, Md. Mokhlesur Rahman Khondokar, Md. Emdadul Haq and Salahud-din Ahmed readout the BERC Order No. 2008/1 at the Commission office in the city in presence of newsmen and representatives from sector stakeholders.
Apart from raising the bulk power tariff, the BERC also issued a number of instructions to the BPDB for enhancing its service quality, and ensuring transparency and accountability in its overall activities.
Terming the average 16 per cent hike in the bulk electricity price 'just and reasonable', the BERC chairman said the Commission has fixed the new power tariff, taking the BPDB's prevailing financial losses into consideration.
He also expressed the hope that the enhancement of bulk tariffs would help the state-owned power entity -- BPDB -- offset its operating losses.
Identifying high purchase rates of electricity from the private power producers as one of the main reasons for BPDB's growing operating losses, the Commission asked the Board to take steps so that the companies send the power tariffs, which were fixed under the agreements between the PBDP and private power producers since the regulatory commission act came into effect, to the regulator within the next six months for review.
Moreover, the BERC also advised the Board to inform the Commission about the detailed tariff rates before signing any power purchase deals in future, the Commission order said, adding that it would not take any change in tariffs into consideration in future if the Commission did not approve those.
Based on the 'test year' 2007-2008, the revenue requirement of the BPDB is to be fixed at nearly Tk 55.39 billion, the BERC chief said citing the Commission order.
On June 15 last, the BPDB submitted an appeal to the Commission, seeking an average 41 per cent hike in its electricity tariffs both for the bulk and retail consumers. Later, the Commission accepted the BPDB's proposal on increase of bulk electricity prices for public hearing.
"The Commission believes that the bulk consumers will absorb the enhanced tariff… If not, they (bulk electricity consumers) can appeal to us for raising their prices at the retail levels," Mr. Golam Rahman told newsmen after presenting the order.
Then, the Commission will take necessary course of actions including a separate public hearing on enhancement of their tariff rates at the retail level, he added.
Mr. Golam Rahman also said the Commission has issued a number of instructions to the BPDB, aiming to help improve its operational efficiency, services quality and ensure transparency and accountability.
Among them, the largest power agency has been asked to adopt a 'service quality programme' shortly and submit the reports to this effect to the Commission by January 15, 2009.
The BERC has also ordered the BPDB to prepare long-term plan regarding production of electricity and generation costs, purchase of power from rental power units and independent power producers (IPPs), taking a five-year 'demand forecast' into account.
Besides, the Board has also been asked to send a monthly report on reliability of its power generating units, number of outages and duration to the Commission by the middle of every month from January 2009.
Electricity tariff for the bulk consumers will go up by 16 per cent on an average from October 1, 2008.
The Bangladesh Energy Regulatory Commission (BERC) Monday issued an order to this effect after completion of two and a half months process of reviewing the opinions of the stakeholders and conducting a public hearing on the hike in power tariff.
According to the order, state-run Bangladesh Power Development Board (BPDB) will be selling electricity to its bulk consumers at an average rate of Tk 2.37 per kilowatt-hour as against the previous rate of Tk 2.04/kilowatt-hour.
Chairman of the BERC Golum Rahman and its four other members Md. Khalilur Rahman, Md. Mokhlesur Rahman Khondokar, Md. Emdadul Haq and Salahud-din Ahmed readout the BERC Order No. 2008/1 at the Commission office in the city in presence of newsmen and representatives from sector stakeholders.
Apart from raising the bulk power tariff, the BERC also issued a number of instructions to the BPDB for enhancing its service quality, and ensuring transparency and accountability in its overall activities.
Terming the average 16 per cent hike in the bulk electricity price 'just and reasonable', the BERC chairman said the Commission has fixed the new power tariff, taking the BPDB's prevailing financial losses into consideration.
He also expressed the hope that the enhancement of bulk tariffs would help the state-owned power entity -- BPDB -- offset its operating losses.
Identifying high purchase rates of electricity from the private power producers as one of the main reasons for BPDB's growing operating losses, the Commission asked the Board to take steps so that the companies send the power tariffs, which were fixed under the agreements between the PBDP and private power producers since the regulatory commission act came into effect, to the regulator within the next six months for review.
Moreover, the BERC also advised the Board to inform the Commission about the detailed tariff rates before signing any power purchase deals in future, the Commission order said, adding that it would not take any change in tariffs into consideration in future if the Commission did not approve those.
Based on the 'test year' 2007-2008, the revenue requirement of the BPDB is to be fixed at nearly Tk 55.39 billion, the BERC chief said citing the Commission order.
On June 15 last, the BPDB submitted an appeal to the Commission, seeking an average 41 per cent hike in its electricity tariffs both for the bulk and retail consumers. Later, the Commission accepted the BPDB's proposal on increase of bulk electricity prices for public hearing.
"The Commission believes that the bulk consumers will absorb the enhanced tariff… If not, they (bulk electricity consumers) can appeal to us for raising their prices at the retail levels," Mr. Golam Rahman told newsmen after presenting the order.
Then, the Commission will take necessary course of actions including a separate public hearing on enhancement of their tariff rates at the retail level, he added.
Mr. Golam Rahman also said the Commission has issued a number of instructions to the BPDB, aiming to help improve its operational efficiency, services quality and ensure transparency and accountability.
Among them, the largest power agency has been asked to adopt a 'service quality programme' shortly and submit the reports to this effect to the Commission by January 15, 2009.
The BERC has also ordered the BPDB to prepare long-term plan regarding production of electricity and generation costs, purchase of power from rental power units and independent power producers (IPPs), taking a five-year 'demand forecast' into account.
Besides, the Board has also been asked to send a monthly report on reliability of its power generating units, number of outages and duration to the Commission by the middle of every month from January 2009.