Power tariff hike to create new crisis, says BGMEA

Chairman of Bangladesh Energy Regulatory Commission AR Khan said on Wednesday that rental power plants should not be considered as a permanent solution to power crisis, reports UNB.
"There is much debate about the rental power plants. The government was compelled to go for setting up rental power plants", he said commenting on tariff hike proposals on the second day of the public hearing at the commission.
The 3-day public hearing began at the commission office in the city on Tuesday on the proposals of five state-owned power distribution companies. The watchdog body heard the proposals of the Power Development Board (PDB) and the West Zone Power Distribution Company (WZPDC) on the first day while debate took place on the proposals of the Dhaka Power Distribution Company Ltd (DPDC) and the Dhaka Electric Supply Company Ltd (DESCO) on Wednesday.
The DPDC proposed to raise its tariff on an average by 23.50 per cent at the retail level while the DESCO urged the regulator to raise the tariff by 15.90 per cent.
However, the technical evaluation committee of the BERC recommended 6.03 per cent rise in the DPDC retail tariff and 2.01 per cent increase in the DESCO tariff at retail level.
Taking part in the debate, representatives from some left leaning political parties, social organisations, business bodies and consumer right groups opposed the tariff rise.
They said a hike in power tariff will hit hard the farmers and the poor and also the middle-class people.
Energy expert Prof Nurul Islam observed that a new slab could be created for the poor who use only a 25 kilowatt (unit).
"If a family uses a light and a fan, then the use could be limited within 25 units. So, this group could be left out of tariff hike", he said. Bangladesh Garment Manufacturers Exporters Association (BGMEA) representative said the power tariff hike will put the already troubled garment sector in new crisis.
DPDC managing director Nazrul Hasan admitted that the DPDC's proposal  to raise 23.50 per cent has no enough logic. "But we don't want to come repeatedly to raise the tariff. That's why we proposed 23.50 per cent rise in a single go", he said.
Opposing the proposal, Ruhin Hossain Prince of Communist Party of Bangladesh (CPB) said the power generation by rental and quick rental power plants has pushed up the production and supply cost.
"If power purchase from the rental power plants is stopped and the government runs its own power plants through repairing old plants, the production cost will automatically come down", he said. Professor Shamsul Alam of Consumers Association of Bangladesh (CAB) observed that the DPDC's distribution cost is relatively higher because of its poor management which pushes up tariff.