The Bangladesh Energy Regulatory Commission on Thursday increased retail power prices by 15 per cent and the bulk power price by 16.92 per cent on
an average for the next one year with a retrospective effect from September 1.
Retail consumers will have to pay Tk 0.68 a unit, on an average, to distribution agencies for use of power from September 1 and the distribution agencies will pay Tk 0.75 a unit on an average to the Power Development Board.
The commission has increased the retail prices on an interim basis which will be finalised after public hearing on the proposals of the distribution agencies, commission officials told New Age.
On July 16, 2012, the commission conducted a public hearing on the power board’s proposal to increase the bulk rate of power by 50 per cent with a subsidy requirement of Tk 3,700 crore for the 2012–13 financial year.
The commission at a press briefing also suggested that the government should give the power board Tk 3,850 crore in subsidy for the 2012–13 financial year.
The commission chair, Syed Yusuf Hossain, at the briefing announced the price increase six months after he last announced an increase on the grounds that the generation cost of the Power Development Board has increased because of its increased dependence on fuel oil-fired power plants.
Yusuf presided over the briefing. Three other commission members — Mohammad Emdadul Haque, Salim Mahmud and Md Delwar Hossain — attended.
The commission in its order restructured the existing slabs or categories of domestic consumers based on the amount of power consumed into six slabs.
It has also reintroduced the lower slab benefits to domestic consumers. The commission withdrew the benefits when it increased power prices with effect from March 1.
The commission instructed the power board to run
diesel-fired plants at 20 per cent and furnace oil-fired plants at 39 per cent of their generation capacity.
The commission chair told reporters that they would not increase the prices in a year if the oil price would not increase on the international market.
With the latest round since February 2011, the commission has so far increased retail power prices by 43.75 per cent — from Tk 4 a unit to Tk 5.75 a unit — on an average in five phases and a combined increase in the bulk price by 98.31 per cent — from Tk 2.37 to Tk 4.70 a unit — on an average in six phases.
According to the new tariff, domestic subscribers of all power agencies but the Rural Electrification Board using less than 75 units a month will need to pay Tk 3.33 a unit.
Consumers using between 76 units and 200 units will need to pay Tk 4.73 a unit, between 201 units and 300 units Tk 4.83 a unit, between 301 units and 400 units Tk 4.93 a unit and between 401 units and 600 units Tk 7.98 a unit.
Domestic consumers of all distribution agencies using more than 600 units a month will need to pay Tk 9.38 a unit.
Domestic consumers under the REB coverage using less than 75 units a month will need to pay Tk 3.66 a unit.
Consumers using between 76 units and 200 units will pay Tk 4.37 a unit, between 201 units and 300 units Tk 4.51 a unit, between 301 units and 400 units Tk 7.10 a unit and between 401 units and 600 units Tk 7.40 a unit.
The use of power for irrigation pumps in areas outside the REB coverage will cost farmers Tk 2.51 a unit while the use of REB power for irrigation will cost farmers Tk 3.76 a unit.
The price of electricity for flat use in common industries, mostly small industries, under the REB coverage has been increased by Tk 0.79 a unit to Tk 6.81.
Commercial and office users under all five power distribution agencies will need to pay Tk 9.0 a unit at flat rates.
Power prices have been increased by Tk 0.91 a unit to Tk 6.81 for users of 11kV line, by Tk 0.87 a unit to Tk 6.48 for users of 33kV and by Tk 0.83 a unit to Tk 6.16 for users of 132kV line at flat rates.
In the order, the commission increased the average bulk price for Dhaka Power Distribution Company to Tk 6.35 a unit by maintaining its system loss within 10 per cent with effect from September 1.
Dhaka Electric Supply Company will pay Tk 6.45 a unit by maintaining its system loss within 8.54 per cent, the power board’s distribution wing will pay Tk 5.86 a unit by maintaining its system loss within 11 per cent, West Zone Power Distribution Company will pay Tk 5.82 a unit by maintaining its system loss within 11 per cent and the REB will pay Tk 5.17 a unit to the power board at bulk rate.
Without exploring other cheaper ways, the government, immediately after assuming office in 2009, decided to buy power from fuel oil-fired rental plants in its efforts to increase power generation in the shortest possible time.
Courtesy of New Age
