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Stakeholders oppose hikes in power prices

FE Report | Thursday, 22 January 2015



A state-run power-distribution company sought a maximum hike in retail electricity tariffs by 69.32 per cent for electricity-run irrigation pumps while another outfit proposed an increase in transmission charge by 71 per cent, triggering instant protests.
Witnesses said stakeholders flew into a rage after West Zone Power Distribution Company (WZPDC) and Power Grid Company of Bangladesh (PGCB) mooted the pleas respectively at a public hearing Wednesday.
Bangladesh Energy Regulatory Commission (BERC) organised the open hearing at the TCB auditorium at Karwanbazar in the city with the proposals for big raises in power tariffs on the table.
The WZPDC sought the electricity tariff hiked to Tk 4.25 per unit (1 kilowatt-hour) from the existing Tk 2.51 per unit for electricity-run irrigation pumps in the country's western region having a total of 21 districts under its jurisdiction.
General Manager (Finance) of the WZPDC Rabindronath Dutta sought the raise in retail electricity tariff, showing higher costs out of the probable hikes in wholesale electricity tariff, known as bulk tariff, and higher wheeling charges as the reasons.
"Higher transmission charge is necessary considering the growing costs of electricity transmission," PGCB Member (Finance) Md Salim pointed out.
The electricity-transmission charge had not been increased after 2004 although the electricity tariffs, both in bulk and retail levels, had been increased several times, he justified.
Stakeholders alleged that mismanagement and corruption caused the rise in expenses of the power utilities, which the government wants to pass on to the consumers' shoulders through raising the price of electricity.
BERC technical evaluation committee recommended that there should be no need of retail electricity tariff hike for the WZPDC if the bulk-level tariff was not hiked.
Once the bulk tariff was hiked, WZPDC's retail-level electricity tariff could be hiked by 2.28 per cent--much less than what it sought.
For PGCB, the technical evaluation committee recommended a raise in transmission costs by 1.53 per cent or Tk 0.04 per unit.
Energy Adviser of the Consumers' Association of Bangladesh Dr M Shamsul Alam and Chief Coordinator of Ganosanghati Andolon Zonayed Saki were among others who took part in the hearing with BERC Chairman AR Rahman in the chair.
As per the BERC schedule, the public hearing of Bangladesh Power Development Board (BPDB) for tariff hike of electricity at bulk level will be held on January 20.
Public hearings on the retail-level tariff-hike proposal of the state-run BPDB and Dhaka Power Distribution Company (DPDC) will be held today (Thursday).
azizjst@yahoo.com