Power prices go up again
STAFF REPORTER, Dhaka
Electricity is set to become costlier as retail power prices have been hiked once again, the ninth time during the Awami League (AL) administrations three terms since 2009. The Bangladesh Energy Regulatory Commission (BERC) yesterday raised the power tariff by 5.3 per cent at retail and 8.4 per cent at wholesale levels.
BERC Chairman Md Abdul Jalil announced the new price of electricity at a packed press conference at the commission headquarters in Dhaka. The new price will be effective from March this year. The last power price revision happened in November 2017, when it was hiked by 5.3 per cent.
As per the decision of the BERC, the electricity price at the retail level has been increased from Tk 6.77 to Tk 7.13 per unit, and at the wholesale level, from Tk 4.77 to Tk 5.17.
For lifeline customers who use less than 50 units of electricity, the increase is 7.14 per cent. Previously, if a lifeline customer paid Tk 3.50 per unit, he/she now would have to fork out Tk 3.75 per unit.
For retail customers who use more than 600 units of electricity, the price increase is 7.10 per cent. So, if such customers earlier used to pay Tk. 10,000 per month, he/she now would have to pay Tk. 10,710.
For small industries, the price increase is 4.024 per cent. Previously, a small industry owner had to pay a flat rate of Tk. 8.20 per unit. Now, after the increase, the rate is Tk. 8.53.
For the agriculture sector, the increase is 4 per cent. Earlier, an agricultural customer had to pay Tk. 4 per unit. After the increase, the rate is Tk. 4.16 per unit.
Electricity tariffs remain unchanged at Tk. 10.30 per unit for commercial and
office users. Within two months of a hike in gas prices at the end of June last year, power distribution agencies began calling for an increase in the bulk power tariff. A public hearing on the proposals was subsequently held on November 28.
At the hearing, the Bangladesh Power Development Board proposed increasing the bulk electricity tariff by 23.27 per cent per unit to trim its losses.
Dhaka Power Distribution Company, West Zone Power Distribution Company Ltd, and Northern Electricity Supply Company also submitted proposals to increase retail prices, citing a rise in spending on three areasoperation and manpower, introduction of modern technology, and equipment price hike.
Only the Bangladesh Rural Electrification Board (BREB) said it would not mind if the bulk power tariff was not increased.
The BERC held a public hearing in December last year considering the proposal. After the hearing, taking the opinion of all consumers, consumer representatives, energy specialists and sector experts, BERC set February 26 to announce the new price.
The bulk power price was Tk. 2.5 per kilowatt-hour (or a unit) on March 1, 2010. Since then, the price has increased by 90 per cent and the current average electricity price is set at Tk. 5.17 kWh.
Speaking on the occasion, BERC chairman Mohammad Abdul Jalil said as the government in 2020 needs to pay Tk. 3,600 crore subsidies, there was no option in front of BERC but to increase the price of electricity.
The Consumers Association of Bangladesh (CAB) said after the announcement that they had argued against the hike during BERCs public hearing and even proposed a drop.
CAB energy affairs adviser M Shamsul Alam described the public hearing as a farce. Their argument for hiking prices was that prices of everything go up, which means the public hearing was pointless. It was a farce, he told The Independent.
