Gas, power prices up again

The country's energy regulator increased natural gas and power tariffs on Thursday on an average by 26.29 per cent and 2.93 per cent respectively for retail consumers with effect from September 01.
The Bangladesh Energy Regulatory Commission (BERC) also raised bulk-level power tariff and wheeling charge for electricity transmission.
The commission announced the new tariffs at a press briefing after holding public hearings for last seven months against separate proposals of the state-run power and gas marketing and distribution companies to raise energy tariffs.
With the hike, the average electricity retail tariff would be Tk 6.33 per unit (1 kilowatt-hour) against the previous tariff of Tk 6.15 per unit.
The power tariff for irrigation and consumers who use up to 50 units would remain unchanged at Tk 3.33 per unit.
Natural gas tariff for captive power plants has been doubled to Tk 8.36 per cubic meter from previous Tk 4.18.
For household gas users, the tariff for a single-burner stove has been increased to Tk 600 a month from current Tk 400, while for a double-burner stove the tariff has been raised to Tk 650 from Tk 450.
The tariff of compressed natural gas (CNG) has been increased to Tk 35 per cubic metre from Tk 30.
"The increase in power and gas tariffs was inevitable and logical to ensure the country's future energy security," said BERC chairman A R Khan.
He said the tariffs were hiked to protect consumers' rights, considering the country's socio-economic status.
The country has already been elevated to lower middle-income country with increase of per capita income and growing development, said Mr Khan.
Prices of different consumer goods also rose simultaneously, he said, questioning "whether the tariff of power was raised to that level?"
"Not at all," the BERC chairman added.
Besides, a new pay-scale is set to be implemented soon, he said.
"To achieve the target of reaching the level of middle-income country, increasing electricity generation and ensuring future energy security are required."
Despite the hike, the tariffs are far low compared to many developed countries, he said.
Australia has fixed 10 per cent of an individual's total income as flat rate for electricity tariff, the BERC chairman cited as an example.
As per the new gas tariff, the power plants and fertiliser factories, which consume around 46 per cent of the country's overall natural gas production, would not require to count extra money, as their tariffs have been kept unchanged at Tk 2.82 and Tk 2.58 per cubic metre respectively.
For industrial consumers, the gas tariff has been increased to Tk 6.74 per cubic metre from Tk 5.84 per cubic metre.
BERC raised natural gas tariff for commercial consumers and tea estates to Tk 11.36 and Tk 6.74 per cubic metre respectively.
The feed gas for CNG has been raised to Tk 27 and operators' margin to Tk 8.0 per cubic metre respectively.
The commission earlier raised natural gas tariffs for all types of domestic consumers, excluding CNG, by 11 per cent on August 1, 2009.
The CNG price was last hiked by 20 per cent to Tk 30 per unit on September 20, 2011.
As per the new tariff, under the first slab, tariff for electricity consumption up to 75 units would be Tk 3.80 per unit from existing Tk 3.53 per unit.
For consumption of electricity under the second slab (76-200 units), new electricity tariff would be Tk 5.14 per unit from previous Tk 5.01.
Under the third slab (201-300 units), new electricity tariff would be Tk 5.36 per unit instead of existing Tk 5.19 per unit.
For consumption of electricity under the fourth slab (301-400 units), the tariff has been increased to Tk 5.63 per unit from existing Tk 5.42.
Under the fifth slab (401-600 units), electricity tariff has been raised to Tk 8.70 per unit from existing Tk 8.51.
Electricity consumers under the sixth slab (above 600 units), would have to count an increased tariff of Tk 9.98 per unit from existing Tk 9.93.
The government last raised natural gas tariff for all consumers in 2009.
In the last six years, only CNG prices were increased twice in 2011, while retail power tariff was last increased in March 2014.
mazizur.rahman@outlook.com