The Consumers Association of Bangladesh (CAB) has threatened this week to move the High Court against Bangladesh Energy Regulatory Commission (BERC) if it does not scrap 5.3 per cent power price hike effective from December last year. It gave a 10-day ultimatum to the commission to scrap it.
Incidentally, the present CAB president was the chairman of the BERC for two years. He is now vocal against irregularities being committed by the same commission he had served. In raising the latest round of power price, the BERC did not allegedly comply with the regulations for fixing energy tariff, he said.
The commission 'unilaterally and illogically' raised the power prices by Tk 0.35 per unit or kilowatt-hour on an average ignoring arguments of the consumers and the findings of its own technical committee during public hearings on the price hike held between September 25 and October 04.
Citing the ground of cost adjustment, the commission has so far raised the average prices of electricity by 82 per cent, up from Tk 3.76 to Tk 6.84 per unit, in nine phases between March 2010 and December 2017. It thus legalised irrational rise in costs of power generation and distribution worth Tk 130.22 billion.
Consumers ask when all power distribution companies are making hefty profit other than Palli Bidyut on the existing rates, what prompted the government to go for another hike in power price?
Analysts have calculated how costs could be cut rather than increased. Yet bypassing the public outcry and recommendations of the public hearing, the authorities went ahead with the increase in power prices. With such an act, the government has, in fact, disregarded the people's opinion. The interests of the people have been grossly ignored.
In fact, the authorities did nothing to pay attention to reducing production costs and system loss and also bring an end to the corruption and pilferage in the power sector. Such measures could definitely reduce the costs.
It appears that the energy and mineral resources ministry fixes the price of liquid fuel only. As such, adjusting power tariffs based on fuel price fixed by the ministry is unfair and illogical. On the other hand, there is a lack of initiatives and drive to raise the efficiency of the power distribution companies. No steps have so far been taken to cut the system losses of such entities.
The fact remains that the people would largely benefit if the price of fuel oil was reduced in keeping with the international market. The government has not only stopped subsidy on fuel oil completely, but is also recovering the past subsidy in full.
Energy analysts claim that if the price of fuel oil is reduced, then the price of electricity need not be increased. It can also help in stabilising the market. But the government refused to look into the suggestion. It does not provide subsidy for power, because it provides the producers with loans. The consumers have to bear the burden of these loans, as well as the interest.
What is worth mentioning is that the consumers are increasingly raising their voices against such 'illogical' power price hike. They are out to argue on the legality of such decision. It is time the authorities woke up to the call of the beleaguered consumers.