Policymakers differ on gas price hike plan

The proposed hike in gas prices has sparked a heated debate at the policymaking level. While the energy regulator and the Power Division want the prices to remain the same, the Energy and Mineral Resources Division (EMRD) favours a hike. The differences surfaced during a high-level meeting at the Prime Minister’s Office (PMO) yesterday. Dr Tawfiq-e-Elahi Chowdhury, energy adviser to Prime Minister Sheikh Hasina, chaired the meeting, which was attended by Nasrul Hamid, state minister for power, energy and mineral resources, AR Khan, chairman of the Bangladesh Energy Regulatory Commission (BERC), Nazimuddin Chowdhury, energy secretary, Mahbub-ul-Alam, additional secretary of the Power Division and other high-ranking officials from the Power Division and EMRD.
Sources present there told The Independent that BERC chairman AR Khan wanted the current gas prices to remain unchanged, as the technical evaluation committee (TEC) of the energy regulator had not found the hike proposed by most gas distribution companies justified. Khan said appeals and arguments placed by representatives of consumer groups and business communities had been considered during an eight-day-long hearing and price hikes had appeared unwarranted at present.
The chief of the energy regulator specifically spoke of the effect a gas price hike would have on captive plants, citing the business community’s concerns. The Power Division representative argued that any increase in gas prices would raise the price of electricity, further burdening ordinary people. However, energy secretary Nazimuddin Chowdhury told the meeting that gas reserves were dwindling and, by 2019, the depletion would be quite alarming.
He said the country was ultimately heading towards liquefied natural gas (LNG), and once that happened, the prices would increase manifold. He said gradual increases in prices would give consumers the scope to adjust to rising gas and electricity costs, as price hikes would be the only option at some point. The energy secretary argued that ordinary people would better adapt to gradual price increases than a steep rise. Sources present at the meeting said both the energy adviser and the state minister opted to increase gas prices in the household sector and CNG and captive plants. They asked the BERC chairman to assess the situation and wanted the commission to make a reasonable recommendation.

Policymakers differ on gas price hike plan

The proposed hike in gas prices has sparked a heated debate at the policymaking level. While the energy regulator and the Power Division want the prices to remain the same, the Energy and Mineral Resources Division (EMRD) favours a hike. The differences surfaced during a high-level meeting at the Prime Ministers Office (PMO) yesterday. Dr Tawfiq-e-Elahi Chowdhury, energy adviser to Prime Minister Sheikh Hasina, chaired the meeting, which was attended by Nasrul Hamid, state minister for power, energy and mineral resources, AR Khan, chairman of the Bangladesh Energy Regulatory Commission (BERC), Nazimuddin Chowdhury, energy secretary, Mahbub-ul-Alam, additional secretary of the Power Division and other high-ranking officials from the Power Division and EMRD. Sources present there told The Independent that BERC chairman AR Khan wanted the current gas prices to remain unchanged, as the technical evaluation committee (TEC) of the energy regulator had not found the hike proposed by most gas distribution companies justified. Khan said appeals and arguments placed by representatives of consumer groups and business communities had been considered during an eight-day-long hearing and price hikes had appeared unwarranted at present. The chief of the energy regulator specifically spoke of the effect a gas price hike would have on captive plants, citing the business communitys concerns. The Power Division representative argued that any increase in gas prices would raise the price of electricity, further burdening ordinary people. However, energy secretary Nazimuddin Chowdhury told the meeting that gas reserves were dwindling and, by 2019, the depletion would be quite alarming. He said the country was ultimately heading towards liquefied natural gas (LNG), and once that happened, the prices would increase manifold. He said gradual increases in prices would give consumers the scope to adjust to rising gas and electricity costs, as price hikes would be the only option at some point. The energy secretary argued that ordinary people would better adapt to gradual price increases than a steep rise. Sources present at the meeting said both the energy adviser and the state minister opted to increase gas prices in the household sector and CNG and captive plants. They asked the BERC chairman to assess the situation and wanted the commission to make a reasonable recommendation.