Public Hearing on Power Tariff Hike Proposals

Bangladesh Energy Regulatory Commission (BERC) has launched its 4-day fresh-power tariff proposal hike public hearing in the midst of opposition from the rights group of consumers, clothing manufacturers, left-leaning political parties and BNP.

The rights group said the proposed tariff is going to shoot up the prices of essential commodities, especially onions.

"If government in the power sector is able to root out corruption, it won't require a hike in tariffs," they said.

The Bangladesh Power Development Board (BPDB) has now proposed that the bulk power tariff be increased from Tk 4.80 to Tk 5.88 per kilowatt-hour (per unit).

BPDB said the procurement of 76.830 million units of electricity would require Tk 4.52.089 million to meet the demand in 2020.

BPDB will incur a loss for purchasing bulk electricity per unit from January 2020, a representative of the BPDB at the hearing chaired by BERC Chairman Monowar Islam said.

In response to the proposed tariff hike, Bangladesh Energy Advisor Prof Shamsul Alam's Consumer Association said the proposed hike may lead to further increase in critical commodity prices.

"We requested BERC during the last meeting to avoid the purchasing of expensive electricity.... but the regulator hardly paid attention to our query," he said, expressing disappointment.

If it addresses the issue of illogical power transmission, supply and generation, the government will be able to save about Tk 4000 crore.
"It is high time that the concerned authorities battled against bribery in the power sector, which is also a driving force for other industries," he said.

Mohiuddin Ahmed, president of the Mobile Phone Users Association, said Boro farming will face a setback as the government moves to increase energy tariffs in the upcoming irrigation season in Boro.

He said the power sector's drive against corruption can bring down the loss of BPDB.

At the hearing, a question was raised by BNP Joint Secretary Sayed Moazzem Hossain Alal against the rental power plant continuation.

According to BGMEA chairman of the standing committee on power and energy Md Anwar Hossain Chowdhury, a total of 61 units of clothing have been shut down and over 30,000 employees have lost their jobs in the current year as the cost of doing business has become more costly.

He added that the planned energy tariff hike could affect more factories as well.

"The RMG market is already under pressure as a result of an increase in labor wages, while international order is also dropping," he added.

Ashulia, Gazipur, Konabari, Kasimpur, Jarun, Malekerbari, Savar, Rupganj, Savar's garment factories are facing more or less three hours of load-shedding, Anwar said.

Out of 1200 factories, BKMEA Senior Assistant Secretary Sajib Hossain said a total of 600 factories were shut down.

"The cost of doing business has risen," he said, adding the lack of consistent electricity supply has also forced the owners to shut down their factories.

Nonetheless, Bangladesh Managing Director Golam Kibria's state-owned Power Grid Company suggested raising the transmission fee from Tk 0.2787 per device to Tk 0.4202.

The meeting was also attended by CPB leader Ruhul Hossain Prince and Chief Coordinator Ganosanghati Andolon Junaid Saki.