Hearing on CAB’s power tariff reduction proposal Oct 5

Bangladesh Energy Regulatory Commission (BERC) will arrange a public hearing on power tariff reduction appeal submitted by Consumers Association of Bangladesh (CAB), reports UNB.

“We’ll hold a daylong hearing on your proposal on October 5,” BERC chairman Monwar Islam told the CAB petitioners while speaking at the current public hearing yesterday.

This is first time the energy regulator accepted the appeal of the consumer rights group for holding such a public hearing on a proposal for reducing power tariff.

The BERC is now holding a hearing on tariff enhancement proposals of different government entities which will continue till October 4.

As part of its common practice, the BERC arranges public hearings on the power tariff hike proposals submitted by different government entities. But the BERC Act has a provision to arrange hearing on tariff reduction proposals as well if it feels justified.

A CAB official said they have submitted a proposal to the BERC along with all necessary documents that the government can reduce electricity tariff by Tk 1.26 per unit by reducing the existing expense of the utilities by Tk 6342 crore.

Meanwhile, the Dhaka Power Distribution Company Ltd (DPDC) placed its retail tariff proposal seeking an average 6.24 per cent increase in the existing tariff.

As per the proposal, they need to raise the average tariff to Tk 7.75 per unit from the existing tariff of Tk 7.32 per unit and the gap between revenue income and expenditure is Tk 0.43 per unit.

But the BERC technical evaluation committee found the proposal unjustified as the DPDC’s revenue deficit per unit is only Tk 0.15.

However, the 5-member BERC body, headed by its chairman, will take the final decision on the tariff re-fixation.

Different consumer rights groups that participated in the hearing opposed the DPDC proposal and said if the management efficiency is improved and unnecessary expense reduced, it is possible to reduce DPDC tariff.

They said the DPDC salary enhancement has ultimately increased its overall cost for which consumer should pay extra money.

Hearing on CABs power tariff reduction proposal Oct 5

Bangladesh Energy Regulatory Commission (BERC) will arrange a public hearing on power tariff reduction appeal submitted by Consumers Association of Bangladesh (CAB), reports UNB. Well hold a daylong hearing on your proposal on October 5, BERC chairman Monwar Islam told the CAB petitioners while speaking at the current public hearing yesterday. This is first time the energy regulator accepted the appeal of the consumer rights group for holding such a public hearing on a proposal for reducing power tariff. The BERC is now holding a hearing on tariff enhancement proposals of different government entities which will continue till October 4. As part of its common practice, the BERC arranges public hearings on the power tariff hike proposals submitted by different government entities. But the BERC Act has a provision to arrange hearing on tariff reduction proposals as well if it feels justified. A CAB official said they have submitted a proposal to the BERC along with all necessary documents that the government can reduce electricity tariff by Tk 1.26 per unit by reducing the existing expense of the utilities by Tk 6342 crore. Meanwhile, the Dhaka Power Distribution Company Ltd (DPDC) placed its retail tariff proposal seeking an average 6.24 per cent increase in the existing tariff. As per the proposal, they need to raise the average tariff to Tk 7.75 per unit from the existing tariff of Tk 7.32 per unit and the gap between revenue income and expenditure is Tk 0.43 per unit. But the BERC technical evaluation committee found the proposal unjustified as the DPDCs revenue deficit per unit is only Tk 0.15. However, the 5-member BERC body, headed by its chairman, will take the final decision on the tariff re-fixation. Different consumer rights groups that participated in the hearing opposed the DPDC proposal and said if the management efficiency is improved and unnecessary expense reduced, it is possible to reduce DPDC tariff. They said the DPDC salary enhancement has ultimately increased its overall cost for which consumer should pay extra money.