The Bangladesh Energy Regulatory Commission (BERC) has failed to give a decision on electricity and gas price hikes within 90 days of public hearings held earlier, as required by the commission act.
A BERC official, wishing to remain anonymous, told the Dhaka Tribune the commission was postponing the announcement of electricity price increases because the government wanted to avert a public backlash during the sweltering summer when fans and air-conditioners are widely used.
“The government is against hiking electricity prices in the summer amid frequent power outages for fear of an adverse public reaction. The commission is waiting for the opportune moment to announce increased prices of electricity for different categories of consumers,” the BERC official told the Dhaka Tribune.
On delays in announcing gas price hikes, the BERC official said the commission was undecided on a proposed markup on the upstream price of natural gas.
Professor Samsul Alam, adviser to the Consumers’ Association of Bangladesh (CAB), yesterday said: “According to the BERC Act, the commission is legally obliged to announce its decision. BERC has no authority to withhold it from the public.”
He said the commission was creating controversy by delaying the announcement.
BERC Chairman AR Khan told the Dhaka Tribune yesterday: “We are working on the proposals and on the arguments we received during the hearings and in post-hearing interactions.
“We will try to make a decision as quickly as possible.”
After separately receiving proposals from the six electricity and seven gas companies to increase prices, BERC organised public hearings on power tariff hike proposals from January 22 to 25 and gas tariff hike proposals from February 2 to 5.
A Tk25 markup per 1,000 cubic feet on the upstream price of natural gas was earlier approved by the government. Adding this amount to the existing price of gas, using a cost-plus pricing strategy, is a novel undertaking.
The commission agrees with the government on the need to fix the price of gas, the BERC official said. But the commission is in a fix on giving a final decision on the price of gas for different categories of consumers, he added.
State-owned Petrobangla had earlier pressured gas distribution companies to send price hike proposals to the BERC.
During the hearings, the CAB strongly opposed the Tk25 markup.
BERC earlier violated the law by holding public hearings on electricity and gas tariff increase proposals without first holding an open meeting.
According to the BERC Act, the commission is bound to hold an open meeting first.