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CAB threatens to move court

FE Report | Sunday, 6 September 2015



Consumers Association of Bangladesh (CAB) threatened on Saturday to move the court, challenging the recent price hike of gas and power.
"The decision on the price hike of gas and power was made without taking into account an adjustment to international oil prices. So, the hike must be reassessed," said CAB Adviser Professor Shamsul Alam while speaking at a press briefing at Dhaka Reporters Unity (DRU).
The Bangladesh Energy Regulatory Commission (BERC) on August 27 hiked the prices of gas and electricity which came into effect from September 1.
According to new tariff rates, consumers will now have to pay Tk 600 per month for single burner (50 per cent rise) and Tk 650 for double burner instead of Tk 450 earlier.
The price of electricity has increased by 2.93 per cent on an average. Since 2013, this was the seventh time the government raised power prices. The recent decision to hike up the prices of gas and power came at a time when oil prices are down in the international market.
Mr Alam said, "A letter was forwarded to the PM's adviser in this connection." If CAB's plea is neglected at administrative level, they will move the higher court to seek a remedy for unjust, unfair and illegal order of the BERC, he added.
The civil pressure group is also carrying out a campaign to create public awareness about the 'government's unfair practice', he said, claiming that the BERC has announced the decision after the expiry of its jurisdiction period.
The relevant BERC law dictates the energy regulator must dispose of any petition regarding energy price escalation or reduction within 90 days from the public hearing. But the regulator announced the decision after more than eight months have passed.
Mr Alam also said there are so many valid grounds to move the court against the BERC order as this was announced under a certain pressure created by the government. He said the petitions pending with the BERC seeking the reduction of energy price are not being considered for holding any public hearing although it is mandatory to entertain such petitions.
CAB Adviser said when the Prime Minister's energy adviser, state minister for power and energy, power and energy secretaries and chairmen of the two organisations met with the BERC top bodies on August 26, a decision was made to raise the prices, although none of BERC officials knew the decision on price hike.
The CAB adviser said the gas and power distribution companies failed to justify the merits of their petitions at the public hearing as most of the companies were making profits in their business.
At the press conference, CAB placed an 11-point demand including revocation of the decision on gas and power price hike, holding a fresh public hearing to reduce gas price and power tariff, investing 50 per cent of revenues earned from energy sector for its development, and ensuring a level playing field for private and public sectors in the power and energy sector.
CAB executive members Mosadder Hossain and Shahnewaj Chowdhury were also present at the press conference.
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