The latest hike in power tariff

The government has hiked power tariff by around 7.0 per cent following the principle 'the more you use, the more you pay'. The latest hike, the seventh in five years and three months, generated enough of heat during public hearing on the proposals sent to the Bangladesh Energy Regulatory Commission (BERC) on power tariff hike. Participants representing political parties and rights bodies vehemently opposed the hike claiming that it would only add to the woes of the poor consumers. Their pleadings have not gone totally unheeded, it seems. The energy regulator has hiked the power rates in line with the suggestions made by the review committee constituted by it, not in accordance with the proposals made by the power distribution companies. The companies had proposed hikes ranging from 11 to 20 per cent.
What is more heartening is that the BERC has kept the power rate unchanged for subscribers consuming power up to 50 units per month. It is a positive move notwithstanding the fact that the likely beneficiaries of the concession would only be a negligible number of power subscribers. The government might have enough reasons to cite in support of the latest hike in power rates. But the fact remains that the upward revision of power rates would leave an obvious unwanted impact on the overall price situation, a development neither the government nor a poor consumer would cherish. But the core issue that has been agitating the minds of millions of power subscribers and a host of independent experts in the relevant field is that the government could have avoided frequent hiking of power tariff had it been serious enough to ensure generation of power at lesser cost.
There is no denying that the level of power generation has greatly improved during the last five years with a remarkable reduction in power outage. But the situation is yet to become fully stable, particularly in the summer season when the demand for power peaks. The use of rental and quick rental power plants has become a major issue of a bitter national debate. Despite opposition by a good number of experts, the government had decided to press into service these plants that produce power at high costs, as a temporary measure.  Power subscribers too wanted some relief from severe power crisis. However, the government had promised to replace the rental plants with large and medium power plants that would generate power at lower cost. And the power ministry also had signed contracts with private rental power plants for periods, ranging from three to five years.
But, the government, to the frustration of many, has failed to implement most of its planned power plants. Nor has it taken any measure to upgrade and refurbish its existing power plants to enhance their generation capacity. A case in point is the Sylhet 100 megawatt power plant. Nearly 12 years have gone by since the start of its implementation in 2002 but the project is yet to be completed. In the meanwhile, the cost of the project has gone up by 300 per cent. Allegations have it that the large and medium power projects are being deliberately delayed to continue with the unfair practices -- financial or otherwise -- involving the rental power plants. Suspicion about foul play has gained extra strength following the government's recent move to renew deals with the rental and quick rental power plants. The government, in order to allay public anxiety over the situation, should bring down the so-called system loss including pilferage, remove all sorts of irregularities in the sector and ensure power at an affordable cost at the consumers' end.