The government is going to increase power price at subscriber’s level today.
“The announcement in this regard will be made on Thursday,” Chairman of the Bangladesh Energy Regulatory Commissions Yusuf Hossain told The Independent on Wednesday. “But I cannot say anything more than this right now” he added.
BERC sources said, a total of 19 per cent power price hike may be effected in two instalments and the increased price may vary from subscriber to organisation.
The government on February 8 raised the average retail power tariff by five per cent to Tk 4.20 from Tk 4 from Feb 1.
The source also informed that there would be minimum price rise for the clients of Palli Bidyut Samities.
The mass hearing on the proposal of different companies ended on November 23.
On November 17, Bangladesh Power Development Board proposed that the energy watchdog enhance electricity tariffs by 19 per cent by two strokes for individual consumers at the retail level.
On November 24, the government decided to raise bulk power price by a stiff 33.57 percent in two instalments with effect from December 1.
As per the decision, there was a 16.79 per cent raise at the first knock in December while another raise of 14.37 per cent at the second go in February 2012.
The wholesale power price was increased to Tk 3.27 from Tk 2.80 per unit.
“In a second installment in February 2012, the price would be raised to Tk 3.74 from Tk 3.27 per unit,” BERC officials said on that day.
Earlier, Bangladesh Energy Regulatory Commission (BERC) advisory body recommended nearly 13 per cent hike in power tariff at consumer level. After a public hearing at the BERC office at Karwanbazar, the evaluation committee suggested a 12.86 per cent raise in tariff. After the hearing convenor and director (power) of the evaluation committee Mohammad Bazlur Rahman on November 17 said the power tariff could be raised by 12.86 per cent on average for all segments of customers of Power Development Board (PDB).
Berc member Salim Mahmud earlier told the media that retail price hike would take place in line with the new bulk price hike, and not exactly reflecting the proposals given by the power distribution companies and the PDB. The commission held hearings on proposals for the hike twice earlier this year. In line with this proposal, the power companies and the authorities seek a nominal three percent price increase for poor or low end customers and the highest increase of 26 percent for big or high end customers. There will be a flat rate for different levels of consumers.
For instance, customers who use up to 100 units of power a month are considered poor. Their rate will go up to Tk 2.7 from Tk 2.6 a unit. This group will continue to enjoy high subsidy.
Customers who use up to 500 units will pay Tk 3.96 instead of Tk 3.46 a unit. This group will get some subsidy.
Customers using up to 1,000 units will pay Tk 6.50 instead of Tk 5.93 a unit. Those using above 1,000 units will pay Tk 7.50 instead of Tk 5.93 a unit. There will be no subsidy for the last group.
Agriculture sector customers will continue to enjoy the highest subsidy. But their tariff will be Tk 2 per unit, up from Tk 1.93.
Other types of customers ranging from commercial and industrial to non-residential ones will pay seven to 15 percent more per unit.
In addition, the power companies have proposed a premium power service for high end consumers who would pay extra to have uninterrupted supply. For now, this proposal deals with customers in Gulshan, Banani and Baridhara areas in the capital where systems loss or power theft is the minimum.
The retail power tariff of the PDB and other distribution companies was raised by 5 per cent on an interim basis from February 8 this year following a raise in bulk power tariff by more than 12 per cent.
As per the PDB proposal, the retail tariff will go up to Tk 2.80 from Tk 2.60 per unit for the users of up to 100 units of residential consumers while the per unit tariff for residential users of 101 to 400 units will be Tk 4 in place of Tk 3.46.
The tariff for residential users of 400 to 1000 units will be Tk 6.50 per unit against the present rate of Tk 5.93. The rate for the users of above 1000 units was proposed to be at Tk 8 per unit.
The planned hike of electricity tariff at the consumer level is likely to fuel inflationary pressure further, destabilising the commodity market and encouraging opposition political parties to intensify an ongoing campaign, economic and political observers said.
An enhanced power price, when implemented, will again push up the rate of inflation.
-With The Independent input
