BERC moves to raise power tariffs

Bangladesh Energy Regularity Commission (BERC) has taken an initiative to raise the bulk power tariffs and fixed September 25 to hear on proposals placed by the distribution companies in this regard. In October, the BERC will hear on proposals by the distribution companies to raise the tariffs at the retail level.

“We will hear from the stakeholders on September 25 for bulk selling prices,” Mizanur Rahman, member of the BERC, told the Independent yesterday.

The official said that the state minister for energy affairs, power secretary, and other senior officials met Prime minister Sheikh Hasina at her office on Tuesday to discuss the issue.

“However, the commission will not take any decision until the customers’ interest is secured. For this, the commission will be hearing views of both the clients and the sellers before taking any final decision,” Rahman added.

After the meeting, the government high-ups instructed the BERC to take decision on the power tariffs as early as possible, senior officials concerned said. After the instruction, the commission held a meeting yesterday and started procedures needed to raise the power prices.

Sources said fuel-based power plants are set to enter the electricity network and that will raise the power tariffs by a huge margin. So, the government is set to make its decision on power tariffs before the next election.

Few months earlier, the distribution companies submitted separate proposals to the commission suggesting 8-12 per cent hike in the retail power prices to cover their losses.

On the other hand, Bangladesh Power Development Board (BPDB) proposed a 15 per cent hike in the prices of its bulk power that the distribution companies usually buy for their retail customers.

The distribution companies also proposed Tk 40 per metre demand charge and Tk 20 service charge for each customer.

Zakiul Islam, Managing Director of North West Zone Power Distribution Co. Ltd, told The Independent that they buy power from the BPDB at Tk 5.40 per unit and their selling price is lower than their buying prices.

So, we need adjustment, Islam said.

The BPDB officials said the cost of per kilowatt electricity was Tk 5.60 and the BPDB was selling it to the clients at Tk 4.90, which translates into a loss of crores of taka every month.

 “The buying cost of power is much higher than that of the selling prices and this is making the distribution companies weaker,” said a high official of a distribution company.

From 2010 to 2015, the government increased power prices for six times but yet has failed to cover the losses suffered by the BPDB.

 

BERC moves to raise power tariffs

Bangladesh Energy Regularity Commission (BERC) has taken an initiative to raise the bulk power tariffs and fixed September 25 to hear on proposals placed by the distribution companies in this regard. In October, the BERC will hear on proposals by the distribution companies to raise the tariffs at the retail level. We will hear from the stakeholders on September 25 for bulk selling prices, Mizanur Rahman, member of the BERC, told the Independent yesterday. The official said that the state minister for energy affairs, power secretary, and other senior officials met Prime minister Sheikh Hasina at her office on Tuesday to discuss the issue. However, the commission will not take any decision until the customers interest is secured. For this, the commission will be hearing views of both the clients and the sellers before taking any final decision, Rahman added. After the meeting, the government high-ups instructed the BERC to take decision on the power tariffs as early as possible, senior officials concerned said. After the instruction, the commission held a meeting yesterday and started procedures needed to raise the power prices. Sources said fuel-based power plants are set to enter the electricity network and that will raise the power tariffs by a huge margin. So, the government is set to make its decision on power tariffs before the next election. Few months earlier, the distribution companies submitted separate proposals to the commission suggesting 8-12 per cent hike in the retail power prices to cover their losses. On the other hand, Bangladesh Power Development Board (BPDB) proposed a 15 per cent hike in the prices of its bulk power that the distribution companies usually buy for their retail customers. The distribution companies also proposed Tk 40 per metre demand charge and Tk 20 service charge for each customer. Zakiul Islam, Managing Director of North West Zone Power Distribution Co. Ltd, told The Independent that they buy power from the BPDB at Tk 5.40 per unit and their selling price is lower than their buying prices. So, we need adjustment, Islam said. The BPDB officials said the cost of per kilowatt electricity was Tk 5.60 and the BPDB was selling it to the clients at Tk 4.90, which translates into a loss of crores of taka every month. The buying cost of power is much higher than that of the selling prices and this is making the distribution companies weaker, said a high official of a distribution company. From 2010 to 2015, the government increased power prices for six times but yet has failed to cover the losses suffered by the BPDB.