Bangladesh Energy Regulatory Commission (BERC) will begin four days of public hearings on proposals to raise retail power tariffs submitted by five state-owned electricity distribution companies, at the TCB Bhaban in Karwan Bazar between January 20 and 25.
“We hope to hold the public hearings from January 20 and a final decision will be made afterwards,” BERC Chairman AR Khan told the Dhaka Tribune yesterday.
The power distribution companies have incurred huge losses from purchasing electricity from costly rental and quick rental power plants.
Earlier, the five state-owned electricity distribution companies submitted their respective proposals in accordance with a decision of the government to hike retail power tariffs by between 17.45% and 25.89% per kilowatt-hour.
The Rural Electrification Board (REB) sought a 25.89% rise in its existing tariff, West Zone Power Distribution Company Limited asked for an increase of 21.31%, Power Development Board (PDB) sought 22%, Dhaka Power Distribution Company Limited (DPDC) 17.85% and Dhaka Electric Supply Company Limited (DESCO) 17.45%.
They urged the BERC to make the proposed increased power tariffs effective from January 1, 2015.
The hearing on the proposals of the West Zone Power Company will be held on January 21, the proposals of DPDC and PDB will be heard on January 22 and the REB and DESCO proposals on January 25.
Additionally, the BERC will begin a hearing on increases to wheeling charges and bulk electricity tariffs. “Wheeling” refers to the transfer of electrical power through transmission and distribution lines from one utility’s service area to another’s.
The PDB has proposed that BERC raise the electricity tariff at bulk level by 18.12% or Tk0.81 per unit.
The hike, if approved, will take the price of electricity to Tk5.51 per unit from the existing Tk4.70, at bulk level.
The production cost of each unit of power is around Tk6.54, therefore the PDB is losing Tk1.84 per unit at present.
The hearing on the PDB’s bulk power tariff proposal will be held on January 20.
The Power Grid Company of Bangladesh (PGCB), which receives electricity wheeling charge from its clients – distribution companies – at the rate fixed by the BERC, has sought increased charges as well.
The PGCB proposed that BERC raise the wheeling charge at 132Kv level by 70.77% or Tk0.3873, and at 33Kv level by 70.06% or Tk0.3896 per unit.
The hearing on the PGCB’s proposals to raise wheeling charges will be held on January 21.