Decision on power tariff hike by Sept 30
FE Report | Thursday, 21 August 2008
The Bangladesh Energy Regulatory Commission (BERC) will take a decision on the proposed hike in power tariffs by September 30 next.
Bangladesh Power Development Board (BPDB) has pleaded for a rise in power tariff by around 41 per cent on an average, officials said.
The commission set September 30 as the deadline for a decision on the proposal after hearing arguments from different stakeholders Wednesday.
Some 20 groups of stakeholders, including chamber bodies, power distribution companies, consumer bodies, non-governmental organisations and law consultancy firms, took part in the hearing on the proposed power tariff hike.
The BERC will analyse the arguments of the stakeholders and related documents before giving its decision on the power tariff hike, a senior commission official said.
The commission will later send its decision to the energy ministry for a final nod, said a senior energy ministry official.
The BPDB submitted the proposal on the power tariff hike to the BERC last month arguing that the hike was necessary to offset the mounting losses of the state-owned power entities.
It proposed the electricity tariff hike by 41 per cent from Tk 2.04 per kilowatt hour (kWh) to Tk 2.87 for bulk users and by 39.5 per cent to Tk 4.98 from Tk 3.57 per kWh for retail consumers.
The accumulated loss of the state-owned power entities, including BPDB, the newly created Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), West Zone Power Distribution Company Ltd (WZPDCL) and Rural Electrification Board (REB) will reach Tk 23 billion in fiscal 2008-09 if the tariff is not raised, the BPDB cautioned.
In the proposal the BPDB sought permission to increase the electricity tariff for the state-owned entities at their current supply costs.
Electricity supply cost of DPDC, DESCO and WZPDCL, REB is Tk 2.849 per kWh, while their average tariff rates are Tk 2.110 per kWh, Tk 2.1609 per kWh, Tk 2.1609 per kWh and Tk 1.936 per kWh respectively.
The BPDB's supply cost is Tk 4.977 per kWh, while its average tariff rate is Tk 3.50 per kWh.
For the retail consumers under residential category the power tariff has been proposed to hike at Tk 2.90 per kWh from Tk 2.50 for consumption of electricity upto 100 units a month, Tk 4.10 per kWh from Tk 3.15 for consumption ranging between 101 and 400 units and Tk 6.20 per kWh from Tk 5.25 for those consuming over 400 units.
For agriculture purpose the tariff has been proposed to increase at Tk 2.75 per kWh from Tk 1.93 per kWh.
For small industries the average hike as proposed is Tk 5.79 per kWh from previous Tk 3.989 per kWh.
The electricity tariff as proposed against flat rate for small industries is Tk 5.82 per kWh from previous Tk 4.02 per kWh.
The off-peak electricity tariff for small industries will be Tk 5.0 per kWh against previous Tk 3.20 per kWh and peak hours tariff will be Tk 7.42 per kWh from Tk 5.62 per kWh.
The average tariff hike for the commercial consumers as proposed is Tk 7.30 per kWh against previous Tk 5.56 per kWh.
The hike of flat electricity rate for commercial users is Tk 7.03 per kWh compared with Tk 5.30 per kWh previously.
The off-peak electricity tariff for commercial users as proposed will be Tk 5.53 per kWh against the previous Tk 3.80 and peak hours tariff will be Tk 9.93 per kWh compared with Tk 8.20 per kWh.
In Wednesday's hearing some of the stakeholders supported power tariff hike, but argued that the hike should not be made as much as the rate proposed by the BPDB, while some others took the stand against any rise.
The groups that took part in the hearing include Consumers Association of Bangladesh (CAB), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Dhaka Chamber of Commerce and Industries (DCCI), Transparency International Bangladesh (TIB), Consumers Trust, Rural Electrification Board (REB) and West Zone Power Distribution Company Ltd (WZPDC).
Bangladesh Power Development Board (BPDB) has pleaded for a rise in power tariff by around 41 per cent on an average, officials said.
The commission set September 30 as the deadline for a decision on the proposal after hearing arguments from different stakeholders Wednesday.
Some 20 groups of stakeholders, including chamber bodies, power distribution companies, consumer bodies, non-governmental organisations and law consultancy firms, took part in the hearing on the proposed power tariff hike.
The BERC will analyse the arguments of the stakeholders and related documents before giving its decision on the power tariff hike, a senior commission official said.
The commission will later send its decision to the energy ministry for a final nod, said a senior energy ministry official.
The BPDB submitted the proposal on the power tariff hike to the BERC last month arguing that the hike was necessary to offset the mounting losses of the state-owned power entities.
It proposed the electricity tariff hike by 41 per cent from Tk 2.04 per kilowatt hour (kWh) to Tk 2.87 for bulk users and by 39.5 per cent to Tk 4.98 from Tk 3.57 per kWh for retail consumers.
The accumulated loss of the state-owned power entities, including BPDB, the newly created Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), West Zone Power Distribution Company Ltd (WZPDCL) and Rural Electrification Board (REB) will reach Tk 23 billion in fiscal 2008-09 if the tariff is not raised, the BPDB cautioned.
In the proposal the BPDB sought permission to increase the electricity tariff for the state-owned entities at their current supply costs.
Electricity supply cost of DPDC, DESCO and WZPDCL, REB is Tk 2.849 per kWh, while their average tariff rates are Tk 2.110 per kWh, Tk 2.1609 per kWh, Tk 2.1609 per kWh and Tk 1.936 per kWh respectively.
The BPDB's supply cost is Tk 4.977 per kWh, while its average tariff rate is Tk 3.50 per kWh.
For the retail consumers under residential category the power tariff has been proposed to hike at Tk 2.90 per kWh from Tk 2.50 for consumption of electricity upto 100 units a month, Tk 4.10 per kWh from Tk 3.15 for consumption ranging between 101 and 400 units and Tk 6.20 per kWh from Tk 5.25 for those consuming over 400 units.
For agriculture purpose the tariff has been proposed to increase at Tk 2.75 per kWh from Tk 1.93 per kWh.
For small industries the average hike as proposed is Tk 5.79 per kWh from previous Tk 3.989 per kWh.
The electricity tariff as proposed against flat rate for small industries is Tk 5.82 per kWh from previous Tk 4.02 per kWh.
The off-peak electricity tariff for small industries will be Tk 5.0 per kWh against previous Tk 3.20 per kWh and peak hours tariff will be Tk 7.42 per kWh from Tk 5.62 per kWh.
The average tariff hike for the commercial consumers as proposed is Tk 7.30 per kWh against previous Tk 5.56 per kWh.
The hike of flat electricity rate for commercial users is Tk 7.03 per kWh compared with Tk 5.30 per kWh previously.
The off-peak electricity tariff for commercial users as proposed will be Tk 5.53 per kWh against the previous Tk 3.80 and peak hours tariff will be Tk 9.93 per kWh compared with Tk 8.20 per kWh.
In Wednesday's hearing some of the stakeholders supported power tariff hike, but argued that the hike should not be made as much as the rate proposed by the BPDB, while some others took the stand against any rise.
The groups that took part in the hearing include Consumers Association of Bangladesh (CAB), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Dhaka Chamber of Commerce and Industries (DCCI), Transparency International Bangladesh (TIB), Consumers Trust, Rural Electrification Board (REB) and West Zone Power Distribution Company Ltd (WZPDC).