Yet another power tariff hike on cards
M Azizur Rahman | Wednesday, 30 July 2008
The government is considering a hike in electricity tariff by about 41 per cent on an average to offset the mounting losses of the state-owned power entities, officials said.
The Bangladesh Power Development Board (BPDB), the parent state-run power entity, has submitted a proposal for the hike to Bangladesh Energy Regulatory Commission (BERC) recently and a hearing on the issue would be held at the commission's office in next month.
The BPDB has proposed the electricity tariff hike by 41 per cent from Tk 2.04 per kilowatt hour (kWh) to Tk 2.87 per (kWh) for bulk users and by 39.5 per cent from Tk 3.57 per kWh to Tk 4.98 per kWh for retail consumers.
The accumulated losses of the state-owned power entities including the BPDB, newly created Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), West Zone Power Distribution Company Ltd (WZPDCL) and Rural Electrification Board (REB) would reach to Tk 23 billion in the fiscal year 2008-09 if the tariff is not increased, the BPDB cautioned.
In its latest proposal the BPDB sought permission to increase the electricity tariff for the state-owned entities at their current supply costs.
Currently electricity supply cost of the DPDC, DESCO and WZPDCL, REB is Tk 2.849 per kWh, while their average tariff rates are Tk 2.110 per kWh, Tk 2.1609 per kWh, Tk 2.1609 per kWh and Tk 1.936 per kWh respectively.
The BPDB's supply cost is Tk 4.977 per kWh, while its average tariff rate is Tk 3.50 per kWh.
For the retail consumers under residential category the power tariff hike has been proposed for Tk 2.90 per kWh from Tk 2.50 for those that consume electricity upto 100 units in a month, Tk 4.10 per kWh from Tk 3.15 for those consuming between 101 and 400 units and Tk 6.20 per kWh from Tk 5.25 for those consuming over 400 units.
For agriculture purpose the tariff hike has been proposed for Tk 2.75 per kWh from Tk 1.93 per kWh.
For small industries the average hike as proposed is Tk 5.79 per kWh from previous Tk 3.989 per kWh.
The electricity tariff as proposed against flat rate for small industries is Tk 5.82 per kWh from previous Tk 4.02 per kWh.
The off peak electricity tariff for small industries would be Tk 5.00 per kWh from the previous tariff rate of Tk 3.20 per kWh and peak hours tariff would be Tk 7.42 per kWh from Tk 5.62 per kWh.
The average tariff hike for the commercial consumers as proposed is Tk 7.30 per kWh from previous Tk 5.56 per kWh.
The hike of flat electricity rate for commercial users is Tk 7.03 per kWh from the previous Tk 5.30 per kWh.
The off peak electricity tariff for commercial users as proposed would be Tk 5.53 per kWh from the previous Tk 3.80 and peak hours tariff would be Tk 9.93 per kWh from Tk 8.20 per kWh.
When contacted Chief Adviser's special assistant on energy issues professor M Tamim said: "The BERC would fix the electricity tariff hike considering the proposal and other relevant aspects and then seek energy ministry's approval."
He said from now on the BERC would fix the tariff structures of the energy utilities, which was earlier done by the ministry.
The incumbent government increased the electricity tariff on March 1, 2007 and as per the hike the tariff for bulk consumers were increased by 10 per cent and for retail consumers by 5 per cent.
But the BPDB termed the latest hike as 'irrational' compared to their supply cost of electricity.
The Bangladesh Power Development Board (BPDB), the parent state-run power entity, has submitted a proposal for the hike to Bangladesh Energy Regulatory Commission (BERC) recently and a hearing on the issue would be held at the commission's office in next month.
The BPDB has proposed the electricity tariff hike by 41 per cent from Tk 2.04 per kilowatt hour (kWh) to Tk 2.87 per (kWh) for bulk users and by 39.5 per cent from Tk 3.57 per kWh to Tk 4.98 per kWh for retail consumers.
The accumulated losses of the state-owned power entities including the BPDB, newly created Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), West Zone Power Distribution Company Ltd (WZPDCL) and Rural Electrification Board (REB) would reach to Tk 23 billion in the fiscal year 2008-09 if the tariff is not increased, the BPDB cautioned.
In its latest proposal the BPDB sought permission to increase the electricity tariff for the state-owned entities at their current supply costs.
Currently electricity supply cost of the DPDC, DESCO and WZPDCL, REB is Tk 2.849 per kWh, while their average tariff rates are Tk 2.110 per kWh, Tk 2.1609 per kWh, Tk 2.1609 per kWh and Tk 1.936 per kWh respectively.
The BPDB's supply cost is Tk 4.977 per kWh, while its average tariff rate is Tk 3.50 per kWh.
For the retail consumers under residential category the power tariff hike has been proposed for Tk 2.90 per kWh from Tk 2.50 for those that consume electricity upto 100 units in a month, Tk 4.10 per kWh from Tk 3.15 for those consuming between 101 and 400 units and Tk 6.20 per kWh from Tk 5.25 for those consuming over 400 units.
For agriculture purpose the tariff hike has been proposed for Tk 2.75 per kWh from Tk 1.93 per kWh.
For small industries the average hike as proposed is Tk 5.79 per kWh from previous Tk 3.989 per kWh.
The electricity tariff as proposed against flat rate for small industries is Tk 5.82 per kWh from previous Tk 4.02 per kWh.
The off peak electricity tariff for small industries would be Tk 5.00 per kWh from the previous tariff rate of Tk 3.20 per kWh and peak hours tariff would be Tk 7.42 per kWh from Tk 5.62 per kWh.
The average tariff hike for the commercial consumers as proposed is Tk 7.30 per kWh from previous Tk 5.56 per kWh.
The hike of flat electricity rate for commercial users is Tk 7.03 per kWh from the previous Tk 5.30 per kWh.
The off peak electricity tariff for commercial users as proposed would be Tk 5.53 per kWh from the previous Tk 3.80 and peak hours tariff would be Tk 9.93 per kWh from Tk 8.20 per kWh.
When contacted Chief Adviser's special assistant on energy issues professor M Tamim said: "The BERC would fix the electricity tariff hike considering the proposal and other relevant aspects and then seek energy ministry's approval."
He said from now on the BERC would fix the tariff structures of the energy utilities, which was earlier done by the ministry.
The incumbent government increased the electricity tariff on March 1, 2007 and as per the hike the tariff for bulk consumers were increased by 10 per cent and for retail consumers by 5 per cent.
But the BPDB termed the latest hike as 'irrational' compared to their supply cost of electricity.