Tk 4,300cr subsidy can prevent power tariff hike

The Bangladesh Power Development Board (BPDB) said yesterday that subsidy worth Tk. 4,300 crore was needed to prevent a tariff hike in the power sector. BPDB officials made this submission before the Bangladesh Energy Regulatory Commission (BERC) at the first hearing on the justification for cutting the bulk power tariff, which will also determine the retail tariffs at the consumer level. “The BERC fixed bulk power tariff at Tk. 4.90 per unit in addition to a Tk. 4,300 crore subsidy in the 2015-16 fiscal year… but the BPDB didn’t get the subsidy as per the directive of the regulator,”

BPDB general manager Kawser Amin Ahmed said at the hearing.  The bulk power tariff cost stands at Tk. 6.03 per unit, he said, adding, it would increase by another Tk. 0.21 a unit due to loan repayments. BERC chairman Monowar Islam chaired the public hearing on the proposed power tariff reduction yesterday.

The hearing was attended by Bangladesh Communist Party (CPB) president Mozahidul Islam Salim, civil society member Syed Abul Maksud, architect Mobasser Ali, economist MM Akash, Biplobi Workers Party general secretary Saiful Huq, CPB politburo member Ruhin Hossain Prince, Consumer Association of Bangladesh (CAB) energy adviser Prof. M Shamsul Alam, Jonaid Shaki of Gono Shanghati Andolon, FBCCI director Amzad Hossain, BPDB member finance Azizul Islam and members of the BERC, among others.

“The generation cost of electricity increases because of allowing ‘illogical’ and ‘unethical’ ways,” said Prof. M Shamsul Alam.

He added that losses to the tune of Tk 11,411.05 crore had been estimated in 12 components including inequity of power purchase from public power plants, non-adjustment of fuel tariff, rental capacity payment, quick-rental power plants etc.

He termed it as “corruption through development”. “I can say with certainty that the power generation cost would come down if the government is able to stop corruption in the power sector,” he said.

Md Mozahidul Islam Salim said: “I don’t understand why the government provides loans instead of subsidy to the power sector, as affordable and low-cost electricity is a fundamental right.” He requested the government to give grants instead of loans for the power sector.

Sayed Abul Maksud described electricity tariff hike as an ‘electric shock’. “Power tariff hike is unacceptable,” he said.

Amzad Hossain said the industrial electricity tariff had been hiked 77 per cent during the past seven years. “We are losing competitiveness because of the tariff hike now,” he added, demanding a reduction.

Ruhin Hossain Prince said at the hearing: “Commission agents are controlling the power tariff instead of the Bangladesh Energy Regulatory Commission due to major corruption in the power sector.”

Jonaid Shaki alleged that Petrobangla is installing a gas pipeline for the private sector instead of public power plants, thus pushing up the power tariff. He said the government has adjusted power tariff seven times since 2009 instead of wages of workers.

Responding at the hearing, Mobasser Ali said the government has only raised power tariff to minimise losses from bank looting.      

Tk 4,300cr subsidy can prevent power tariff hike

The Bangladesh Power Development Board (BPDB) said yesterday that subsidy worth Tk. 4,300 crore was needed to prevent a tariff hike in the power sector. BPDB officials made this submission before the Bangladesh Energy Regulatory Commission (BERC) at the first hearing on the justification for cutting the bulk power tariff, which will also determine the retail tariffs at the consumer level. The BERC fixed bulk power tariff at Tk. 4.90 per unit in addition to a Tk. 4,300 crore subsidy in the 2015-16 fiscal year but the BPDB didnt get the subsidy as per the directive of the regulator, BPDB general manager Kawser Amin Ahmed said at the hearing. The bulk power tariff cost stands at Tk. 6.03 per unit, he said, adding, it would increase by another Tk. 0.21 a unit due to loan repayments. BERC chairman Monowar Islam chaired the public hearing on the proposed power tariff reduction yesterday. The hearing was attended by Bangladesh Communist Party (CPB) president Mozahidul Islam Salim, civil society member Syed Abul Maksud, architect Mobasser Ali, economist MM Akash, Biplobi Workers Party general secretary Saiful Huq, CPB politburo member Ruhin Hossain Prince, Consumer Association of Bangladesh (CAB) energy adviser Prof. M Shamsul Alam, Jonaid Shaki of Gono Shanghati Andolon, FBCCI director Amzad Hossain, BPDB member finance Azizul Islam and members of the BERC, among others. The generation cost of electricity increases because of allowing illogical and unethical ways, said Prof. M Shamsul Alam. He added that losses to the tune of Tk 11,411.05 crore had been estimated in 12 components including inequity of power purchase from public power plants, non-adjustment of fuel tariff, rental capacity payment, quick-rental power plants etc. He termed it as corruption through development. I can say with certainty that the power generation cost would come down if the government is able to stop corruption in the power sector, he said. Md Mozahidul Islam Salim said: I dont understand why the government provides loans instead of subsidy to the power sector, as affordable and low-cost electricity is a fundamental right. He requested the government to give grants instead of loans for the power sector. Sayed Abul Maksud described electricity tariff hike as an electric shock. Power tariff hike is unacceptable, he said. Amzad Hossain said the industrial electricity tariff had been hiked 77 per cent during the past seven years. We are losing competitiveness because of the tariff hike now, he added, demanding a reduction. Ruhin Hossain Prince said at the hearing: Commission agents are controlling the power tariff instead of the Bangladesh Energy Regulatory Commission due to major corruption in the power sector. Jonaid Shaki alleged that Petrobangla is installing a gas pipeline for the private sector instead of public power plants, thus pushing up the power tariff. He said the government has adjusted power tariff seven times since 2009 instead of wages of workers. Responding at the hearing, Mobasser Ali said the government has only raised power tariff to minimise losses from bank looting.