The five state-owned electricity distribution companies have proposed for increasing retail power tariff by ranges between 8.58% and 19.50% per unit (each kilowatt-hour).
They urged the Bangladesh Energy Regulatory Commission (BERC) to make the proposed rate effective from this February 1.
BERC Chairman AR Khan acknowledged that the five companies had submitted their proposals to the commission in the past two days.
“The final decision on their proposals would be made after holding an open meeting and a public hearing,” which he said would take them one or two months to finish.
The Rural Electricity Board (REB) proposed a 12.57% hike; the West Zone Power Distribution Company Limited 8.58%; the Dhaka Electric Supply Company Limited (Desco) 11.69%; the Dhaka Power Distribution Company Limited 19.50%; and the Power Development Board proposed a 12% raise.
Officials of the companies said they were seeking the increase in power tariff in order to prevent the companies from suffering huge losses.
The bulk rate for electricity at present is Tk4.70 per unit and the retail price is Tk5.75. The state-owned distribution companies lose around Tk2 per unit due to gap between production cost and power tariff at consumer level.
The government spent a subsidy of Tk5,170 crore in the power sector in the last fiscal year.
In October-November 2012, the companies had proposed price hikes between 9.59% and 12% per unit, and the BERC evaluation committee on tariff had proposed a 5% hike.
In 2012, the REB had proposed a raise of 9%, the West Zone 9.59%, Desco 11.69%, the DPDC 11.31% and the PDB 12%.
But the prime minister had opposed any raise in power tariff in the election year and the plan had to be postponed following her intervention.
According to the BERC act, after hearing the commission has to make a decision within 90 days.
On February 5 this year, the distribution companies again placed their proposals for price hike at a meeting with the BERC. Power Division Secretary Monowar Islam asked the commission to work on the 2012 proposals.
The BERC officials, however, told the secretary that the Consumers Association of Bangladesh would not accept that.
On February 15, the Power Division asked the companies to send fresh proposals.
The BERC last increased the retail price of electricity by 15% from Tk5 to Tk5.75 per unit on September 20, 2012.
