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The Financial Express

Two-day public hearing on retail-level power tariff hike starts Jan 8

| Updated: December 13, 2022 17:26:32


Two-day public hearing on retail-level power tariff hike starts Jan 8

The country’s energy regulator has arranged a two-day public hearing starting from January 8, 2023, to justify power tariff hike proposals in retail level by different state-run power distribution companies.

This will be the first public hearing to fix energy prices by Bangladesh Energy Regulatory Commission (BERC) following the amended rule that strips the energy regulator of its authority to hold pre-hike public hearing.

All power distribution companies including Bangladesh Power Development Board (BPDB), Dhaka Power Distribution Company (DPDC), the Dhaka Electric Supply Company (DESCO), West-Zone Power Distribution Company (WZPDC) and Rural Electrification Board (REB) sought to hike retail level electricity tariff following the November hike in bulk level electricity tariff by the commission.

The BERC in November hiked the weighted average bulk power tariff by 19.92 per cent to Tk 6.20 per unit (1 kilowatt-hour) from previous Tk 5.17 per unit with effect from December 2022.

The distribution companies sought to hike retail level electricity tariff by around 25 per cent on an average, said sources.

The commission previously had raised the average retail level electricity tariff in February 2020 by 5.3 per cent, or Tk 0.36 to Tk 7.13 per unit from previous Tk 6.77 per unit.

Sources said, the government was not interested to implement the amended BERC rule for fixing retail level electricity tariff as the retail-level power-tariff hike was underway with BERC's jurisdiction when the rule was amended.

With the amendment, the government can now fix, adjust or readjust electricity and gas prices at the consumer level on its own - for the sake of adjusting its subsidy, public interests, and ensuring uninterrupted energy supply for agriculture, industries, fertiliser, trade and commerce, and domestic purposes, according to the gazette notification.

Other objectives of the amendment are to take prompt steps for enhancing electricity production, energy transmission, marketing, supply, and distribution, it added.

The amendment, however, has been made amid strong opposition and criticism from various quarters.

But the government envisages first discretionary raise in natural gas tariffs under the amended rule.

A senior official of the Ministry of Power, Energy and Mineral Resources (MPEMR) says the express readiness of the country's business community to pay higher to get increased quantity of natural gas has prompted the government to move forward with a plan to raise its tariffs.

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