The Consumers’ Association of Bangladesh (CAB) has urged the government to implement a raft of policy measures including scraping the agreements with rental and quick rental power companies to keep the power prices in control.
The association has recently sent a letter to the Power Division with their recommendations on the power sector.
“After taking office, the new government will hike the gas price. The power tariff will also have to be increased simultaneously. We have tried to place some suggestions on reining in the power price,” said the association’s Energy Adviser Shamsul Alam in the letter.
The letter said the government has refrained from hiking the gas price ahead of the 11th general election, but the process is likely to resume after.
“There is no alternative to increasing the gas price ultimately as the government has to import liquefied natural gas to ensure the gas supply. If the gas price is hiked, power tariff will also have to be increased,” the letter further said.
The government, after taking office in 2009, approved setting up rental and quick rental power plants to expedite power generation, and extended the deals after the validity of the projects expired, the letter said.
“The government could not shut these rental power plants as it failed to install major power plants during its mid-term,” said the letter.
Recommendations
The government will have to scrap agreements on purchasing power from rental and quick rental power plants. Gas used in these power plants will have to be used in the state-run plants to increase power generation.
The power price should be made reasonable by reviewing all agreements of the private sector.
Cancelthe Speedy Supply of Power and Energy Act to ensure competition in the power and energy sectors.
The shares in power and energy sector of state-owned companies which were sold to the private sector will have to be returned to the ownership of the government.
All state-owned companies in the power and energy sector will have to be run by “no loss, no profit” policy instead of “cost plus” policy.
The association also made some recommendations to save marginal consumers. They include no hike of power price until 100 units in five years.
To ensure power for all, the government needs to offer low price in purchasing solar mini, micro and nano grid power and solar battery in off-grid areas.
No power outage in rural areas from Maghrib to Esha prayers.