Power crunch
Monday, 18 June 2007
THE government is contemplating a move to hand over the entire power supply and generation to the private companies. Tapan Chowdhury, the power adviser, said these private operators would also be allowed to fix their tariffs.
In fact, total handover of the power sector is not expected. The state must maintain its operations in the power sector and not give in to the suicidal prescription of the international financial institutions. All three of the multilateral lending agencies - the World Bank, the International Monetary Fund and the Asian Development Bank - have recommended increase in the prices of power and energy as conditionalities for their loans, some of which are intended for to the Power Development Board.
We feel that wholesale privatisation without sufficient regulations could create another predatory market where unilateral high tariffs might overtax the consumers. For that reason, the government must retain control over power distribution for the welfare of its citizens. At the same time, the energy regulatory commission should formulate a comprehensive power policy.
The Rural Electrification Board also charges higher rates and has less system's loss than other agencies that supply power to the large metropolises. So the rural populace are paying more than the urban elites. Many of them pay the meter charge every month without actually receiving any power supply.
Investigations into the expenditures and alleged corruption within the power ministry and relevant agencies have not been yet conclusive. Nor has the current regime made any visible efforts to reduce system's loss or pilferage. The private sector should be allowed to take over only when a whole set of regulations are in force defining the responsibilities and rights of the consumers and the power suppliers.
Ahmed Reza
Dhanmandi R/A, Dhaka
In fact, total handover of the power sector is not expected. The state must maintain its operations in the power sector and not give in to the suicidal prescription of the international financial institutions. All three of the multilateral lending agencies - the World Bank, the International Monetary Fund and the Asian Development Bank - have recommended increase in the prices of power and energy as conditionalities for their loans, some of which are intended for to the Power Development Board.
We feel that wholesale privatisation without sufficient regulations could create another predatory market where unilateral high tariffs might overtax the consumers. For that reason, the government must retain control over power distribution for the welfare of its citizens. At the same time, the energy regulatory commission should formulate a comprehensive power policy.
The Rural Electrification Board also charges higher rates and has less system's loss than other agencies that supply power to the large metropolises. So the rural populace are paying more than the urban elites. Many of them pay the meter charge every month without actually receiving any power supply.
Investigations into the expenditures and alleged corruption within the power ministry and relevant agencies have not been yet conclusive. Nor has the current regime made any visible efforts to reduce system's loss or pilferage. The private sector should be allowed to take over only when a whole set of regulations are in force defining the responsibilities and rights of the consumers and the power suppliers.
Ahmed Reza
Dhanmandi R/A, Dhaka