The energy regulator will sit with prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury today to discuss fixing the tariffs on fuel oil, power and gas transmission charges at the bulk and consumer levels.
After six months of public hearing, finally they are sitting to discuss the issue and this comes only three days after Finance Minister AMA Muhith hinted that retail prices of oil might be revised down in about a month in line with the falling global trends.
Although, the Bangladesh Energy Regulatory Commission (BERC) could not comply with its governing law by failing to decide on hiking power and gas prices within 90 days of the public hearings.
A BERC official told the Dhaka Tribune that State Minister for Power, Energy and Mineral Resources Nasrul Hamid; Prime Minister’s Principal Secretary Abul Kalam Azad; Power Division Secretary Monowarul Islam; and Energy Division Secretary Abu Bakar Siddique will attend today’s meeting.
Chairman AR Khan and the other members of BERC are also expected at the discussion.
The BERC official also said that bulk and consumer-level rates of electricity and gas and transmission charges are likely to increase but fuel oil tariffs will probably decrease.
After receiving separate proposals from the six electricity and seven gas companies to increase prices, the BERC organised public hearings on power tariff hike proposals during January 22-25 and gas tariff hike proposals during February 2 -5 this year.
Another BERC official, also seeking anonymity, said: “After the public hearings, the government verbally requested the commission not to raise retail power prices. The government did that keeping in mind the falling international oil prices and protests from the BNP-led 20-party alliance and left-leaning parties.”
Prime Minister Sheikh Hasina has recently asked officials concerned to adjust electricity prices to reduce the gap between cost of production and the price of the utility.
Despite being in operation for nearly a decade now, the BERC is still to formulate the regulations for fixing retail prices of fuel oil due to the energy ministry’s unwillingness.
The BERC act was passed in 2003 and it has been fixing the retail and bulk prices of electricity and gas since September 2008 and August 2009 respectively.
As per the law that governs BERC, the regulator’s job is controlling, regulating and fixing the tariff on power, energy and all petroleum products in the country.
But in recent times, the government has raised fuel oil prices through executive orders, which is a violation the BERC Act 2003.
“If the fuel oil prices are revised again this time, it will also be done on executive orders,” a BERC member said.
