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CAB demands return of BERC's authority to fix gas, electricity rates

They also caall for the implementation of reform proposals aimed at ensuring transparency at all stages of electricity, energy, and renewable electricity supply

Update : 29 Apr 2023, 10:15 PM

The Consumer Association of Bangladesh (CAB) has put forth 13 demands, including the restoration of the Bangladesh Energy Regulatory Commission's (BERC) authority to determine the prices of electricity and energy.

The 13-point demand was raised at a meeting, titled “Energy Crisis and Renewable Energy Development”, at the Cirdap auditorium on Saturday.

The meeting was organized by CAB.

The event was chaired and moderated by CAB President Ghulam Rahman and Organizing Secretary Dr Syed Mizanur Rahman, respectively, while General Secretary Advocate Humayun Kabir Bhuiyan delivered the concluding speech.

CAB Energy Advisor and Senior Vice President Prof Dr M Shamsul Alam, Workers Party President Rashed Khan Menon, energy expert Dr Badrul Imam, Barrister Jyotirmoy Barua, architect Iqbal Habib and others were present.

During the meeting, CAB presented a 13-point demand for the implementation of reform proposals aimed at ensuring transparency, fairness, rationality, and accountability at all stages of electricity, energy, and renewable electricity supply, including pricing.

The demand is aimed at ensuring that consumers receive the appropriate price, quantity, and quality of electricity, energy, and renewable energy services, speakers said.

The speakers highlighted the fact that although the supply of electricity has increased at a rate of 7%, production capacity has grown by 12%.

However, due to a lack of fuel, electricity production is declining, resulting in unbearable price hikes for consumers.

They also pointed out that the public sector faces discrimination in gas distribution as well.

Gas is being purchased from domestic companies at Tk1.03 per cubic meter, while an equivalent amount is spent on importing LNG at Tk83, the speakers said. 

Moreover, there has been no growth in gas reserves and production from the Gas Development Fund, with 65% of the funds remaining unutilized, they added.

General secretary of Samyabadi Dal and former minister Dilip Barua said: “Karnaphuli Fertilizer Company Limited (Kafco) had to give gas at domestic prices, and fertilizer had to be bought from them at Singapore rates. It's just an example. The government talks about Bangabandhu's principles, but they are working outside of his principles, because they want to get rich overnight.  The state system is corrupt. It is against the spirit of the Liberation War. There is no way to get rid of this without protest.”

President of Bangladesh Workers Party Rashed Khan Menon said: “Electricity is being produced but it cannot be used, and the capacity charge still has to be paid. Indemnity is a hated word in our politics, but in 2022, it has been revised and renewed.  The role that our parliament is supposed to play, unfortunately, is not being played properly.”

Barrister Jyotirmoy Barua said: “JICA has been given the responsibility to make energy policy. There is no other country in the world that has given responsibility to foreigners in such a sensitive matter. What  guarantee is there that this information will not be transmitted?”

He also claimed there is a conspiracy to abolish Bangladesh Energy Regulatory Commission (BERC). 

“If BERC has any restrictions, they should be removed. We want BERC to speak for the people,” he added.

Architect Iqbal Habib said: “The state law says nothing can be done without Environmental Impact Assessment (EIA), but this is happening constantly. You cannot survive on money by destroying the environment.”

Energy expert Dr Badrul Imam said: "USGS in their survey report said that another 32 tcf of gas remains undiscovered in Bangladesh. At present 1 tcf of gas is being used per annum, thus there are another 32 years of reserves. Today's crisis is because domestic gas exploration activities are not at the right pace. Today we have to import LNG at a high price. If this is the case, the gas sector will be completely dependent on imports in 30 years.

"Now preparations are underway to go to the bidding round at sea; work has also started on land. But it is too late. If this had been done 10 years ago, today's crisis would not have arisen," he added.

Professor MM Akash said: "Energy is a natural resource and as per the constitution the people are the owners of natural resources. The constitution states that three types of ownership are permissible. The government has recently curtailed the powers of BERC. There is some degree of transparency, accountability when BERC sets prices. So, they have undermined the powers of BERC."

Razequzzaman Ratan, deputy general secretary of Social Party of Bangladesh, said: ''The  electricity sector is a clear example of how the pockets of people are being cut by imposing small liabilities.''

CPB General Secretary Ruhin Hossain Prince said: "We have built the Padma Bridge; we have done many things. Why can't I raise gas by bringing an expert? This is because the Ministry of Energy acts as the PRO of multinational companies."

CAB Energy Advisor and Senior Vice-President. Shamsul Alam said that although the supply of electricity has increased by 7%, the production capacity has increased by 12%. 

“Electricity production is decreasing due to a lack of fuel. As a result, consumers are suffering from unbearable price hikes. The government sector suffers discrimination in gas distribution. Gas is purchased from domestic companies at Tk 1.03 per cubic metre, while LNG is being imported at Tk 83. The Gas Development Fund does not include gas reserves and production growth, and 65% of the funds remain unutilized,” he said.

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