Bangladesh Energy Regulatory Commission (BERC) has increased the retail power tariff by 6.96% per unit (kilowatt-hour) on an average, with the price rising from Tk5.75 to Tk6.15; a price hike of Tk0.40.
After much debate, the BERC has also introduced a new slab of “lifeline tariff” for domestic power users who consume between 1-50 units. For this group of consumers, the power price was not increased; meaning a consumer would have to pay between Tk100-Tk167 monthly to use 1-50 units of electricity.
The tariff will also stay unchanged for the consumers using electricity for agricultural purposes.
Following last week’s public hearing on the proposed hikes, BERC Chairman AR Khan made the announcement yesterday at the commission office in the city’s Karwan Bazar. BERC members Salim Mahmud and Delwar Hossain were also present during the announcement of the new tariff.
The new tariff – which was announced without introducing any subsidy – will come into effect from the current billing month.
This is the first time power prices have been hiked since the Awami League-led government took office in January.
At present, there are nine consumer groups, while there are six slabs for domestic consumers.
Consumers and the Rural Electrification Board (REB) had earlier proposed for the “lifeline tariff” during the public hearing.
Since 2009, the BERC had increased bulk and retail tariffs for eleven times. In the latest increment made in September 2012, retail power price rose by 15%, and bulk-level prices rose by 17%.
With yesterday’s announcement of price hike, Dhaka Electric Supply Company Ltd (Desco) is expected to make Tk123.67 crore in profits, the maximum among the five power suppliers.
The company suffering the most from the latest tariffs would be Power Development Board (PDB), with losses estimated at Tk81 lakh.
The highest tariff hike of 7.69% per unit was made for the consumers of the Dhaka Power Distribution Company (DPDC), while the lowest increase of 5.41% came for the REB consumers.
During the hearing, the PDB asked for increasing guarantee money, and the REB demanded hike for minimum bill, service charge, demand-charge and delay-charge; but the commission declined all their requests.
The five power distributors – the PDB, the REB, Desco, the DPDC, and West Zone Power Distribution Company – supplies power to around 1.4 crore consumers across the country.
Md Abdul Karim, a consumer under the REB Satkhira Palli Bidyut Samity (PBS), welcomed the new lifeline tariff slab and said the move would benefit consumers at the rural level.
BERC Chairman AR Khan said the commission made its decision after considering the interest of all consumers, as well as keeping in mind the socioeconomic impact of the move. The BERC also considered on ensuring that the hike did not have a negative impact on the poor, while considering the impact of agriculture in the national economy, he added.
The price was hiked to coordinate the operational losses by the power distribution companies, AR Khan said.
The consumers would not refuse to pay higher prices if quality service was provided, the BERC chairman expressed hopes.
Brig Gen Moin Uddin, chairman of the REB, said a greater price increase would have benefitted the REB, as 60 of its 72 PBSs were currently suffering losses. He also urged the government to consider introducing subsidies for the PBSs.
Along with the domestic consumers, the power tariff was also increased for small industries, non-residential, commercial and offices, medium voltage (11kV general use), extra high voltage (132kV general use), high tension (33kV general use), and street light and water. The hikes for these groups ranged between 1.53% and 13.02%.
Meanwhile, the BNP and different left-leaning parties including the Communist Party of Bangladesh condemned the latest power price hike.
