In a desperate move to pass on rising energy costs to consumers, the government raised both retail- and bulk-level electricity tariffs for all types of consumers on Tuesday, with effect from tomorrow (Wednesday).
The already increased natural gas tariff will also come into effect from Wednesday alongside the hiked power tariffs, meaning the consumers will have to count additional costs for consuming natural gas and electricity from tomorrow.
The Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) issued the order for the power tariff hike for all consumers through a gazette notification, which experts say would have a domino effect.
The government has raised the retail electricity tariff by up to 5.07 per cent, while the bulk electricity tariff has been hiked by up to 7.36 per cent.
This is, however, the second hike in the retail level electricity tariff in the past two consecutive months.
The MPEMR through a previous gazette notification on January 12, had raised the retail level electricity tariff by around 5.0 per cent with retrospective effect from January 1, 2023.
A tariff hike in two consecutive months meant the retail level electricity tariff went up by over 10.40 per cent within the past two months.
The most vulnerable consumer group, the lifeline consumers who use 0–50 kWh of electricity per month, will have to count Tk 4.14 per unit (1 kilowatt-hour) from February 1, 2023, instead of Tk 3.75 per unit, which they paid before January 1, 2023.
Through a recent amendment to the Bangladesh Energy Regulatory Commission (BERC), the government vested in itself the authority to adjust energy prices, as and when necessary, bypassing the commission and the public hearing procedure.
The BERC previously hiked natural gas and electricity tariffs after holding public hearings.
The BERC, in its latest order, had hiked the bulk-power tariffs by 19.92 per cent in November 2022, which came into effect in December 2022.
Under the latest hike, household consumers who use electricity within the range of 0-75 units will have to count Tk 4.62 per unit starting February 1, 2023, instead of Tk 4.19, which they paid before January 1, 2023.
Household consumers who use electricity within the range of 76 to 200 units will have to count Tk 6.31 per unit starting February 1, 2023, instead of Tk 5.72, which they paid before January 1, 2023.
Household consumers who use electricity within the range of 201-300 units will have to count Tk 6.62 per unit starting February 1, 2023, instead of Tk 6.0, which they paid before January 1, 2023.
Consumers who use electricity within the range of 301–400 units will have to count Tk 6.99 per unit from February 1, 2023, instead of Tk 6.34, which they paid before January 1, 2023.
Household consumers who use electricity within the range of 401–600 units will have to count Tk 10.96 per unit starting February 1, 2023, instead of Tk 9.94, which they paid before January 1, 2023.
The household consumers who use electricity above 600 units will have to count Tk 12.63 per unit starting February 1, 2023, instead of Tk 11.46, which they paid before January 1, 2023.
The pump users for irrigation purposes will have to count Tk 4.59 per unit starting February 1, 2023, instead of Tk 4.16, which they paid before January 1, 2023.
Small industry owners will have to count Tk 9.41 per unit, Tk 8.46 per unit and Tk 12.29 per unit for their consumption of electricity as flat rate, off peak rate and peak rate from February 1, 2023, instead of Tk 8.53 per unit, Tk 7.68 per unit and Tk 10.24 per unit respectively, which they paid before January 1, 2023.
With the hike in bulk-electricity tariff, the state-run power distribution companies that supply electricity to commoners will have to purchase electricity from the BPDB and the REB at 6.57 per cent to 7.36 per cent higher rates to purchase 230 kilovolt (kv), 132 kv, and 30 kv electricity.
Natural gas consumers across the country will also have to count additional tariffs of up to 178.88 per cent from today (Wednesday), as the MPEMR, through its previous executive order, hiked the tariff on January 18, making it effective from February 1, 2023.
Government power plants, independent power plants (IPPs), and rental power plants owned by the private sector will have to count Tk 14 per cubic meter from the previous rate of Tk 5.02 - which comes to a 178.88-per cent rise.
Small and cottage industries will have to count the second maximum hike to Tk 30 per cubic meter from the previous Tk 10.78, which accounts for a rise of 178.29 per cent.
Captive power plants, small power plants and merchant power plants will have to count 87.50 per cent higher tariff to Tk 30 per cubic meter from the previous Tk 16 per cubic meter.
Big industries are to pay bigger gas bills by 150.41 per cent to Tk 30 per cubic meter from the previous Tk 11.98 per cubic meter.
Medium-category industries will have to pay 154.66 per cent higher tariff to Tk 30 per cubic meter from the previous amount of Tk 11.78.
Commercial consumers, including hotels, restaurants and similar business outlets, have to count higher bill rates by 12.80 per cent to Tk 30.50 per cubic meter from the previous Tk 26.64.
Meanwhile, experts and rights groups have termed the hike ‘illogical’ and a threat to the country’s future energy security.
"This is an outcome of long lasting corruption and lack of accountability in power and energy sector," energy adviser of the Consumers Association of Bangladesh professor M Shamsul Alam told the FE Tuesday.
Consumers' rights have been ignored with the hikes, he alleged.
Small and cottage industry consumers including those of irrigation, fisheries sector will bear the brunt as they will have to count additional expenses unlike the previous occasions, he pointed out.
Small and cottage industries, irrigation, fisheries were kept outside the purview of tariff hikes to ensure their growth, he added.
"The special law under which the government attained the authority to award contracts in power and energy sector bypassing the competitive tendering process, is the main culprit for the mess," the CAB leader alleged.
Former Director General of the Power Cell BD Rahmatullah also echoed the similar view while talking to this correspondent on Tuesday.
"This is a free style in hiking power and energy prices without maintaining any transparency and accountability," he said.
"Nowhere in the world does the government raise energy and power prices in such a way," he alleged.
"The government is raising power and energy prices in the name of adjustment, which is unacceptable," he said.
This is part of fulfilling the conditions of the International Monetary Fund (IMF), without considering the economic condition of the countrymen, as the former Power Cell DG alleged.
Both of them termed the hike 'too much' and said it would reduce the competitiveness of the country's growing industrial sector.
It will push up inflation and raise prices of all essentials, worsening the already-strained fiscal condition of commoners, they concluded.
