Bangladesh Energy Regulatory Commission (BERC) will start four days of public hearing today on the retail power tariff hike proposals made by five state-owned electricity distribution companies.
BERC Chairman AR Khan said the hearing will be held at the TCB Bhaban in the city’s Karwan Bazar till January 25.
The proposals cited of the five companies, DESCO made a profit of over Tk158 crore during FY2013-14 while PGCB made around Tk100 crore profit last year.
But Power Development Board (PDB) has incurred a huge loss because of bulk electricity sales to the distribution companies at lower rates and system loss, though the distribution companies saw profit from electricity sales to retail consumers.
PDB proposed BERC raise power tariff at bulk level by 18.12% or Tk0.81 per unit.
The hike, if approved, will take the price of electricity to Tk5.51 per unit from the existing Tk4.70 at bulk level.
The production cost of each unit of power is around Tk6.54, therefore the PDB is losing Tk1.84 per unit at present.
The hearing on the PDB’s bulk power tariff proposal will be held on January 20.
The power distribution companies, however, have incurred huge losses from purchasing electricity from costly rental and quick rental power plants.
Earlier, the distribution companies submitted their proposals in accordance with a decision of the government to hike retail power tariffs by between 17.45% and 25.89% per unit.
They urged the BERC to make the proposed increased power tariffs effective from January 1, 2015.
The hearing on the proposals of the West Zone Power Distribution Company Limited will be held on January 21, the proposals of Dhaka Power Distribution Company Limited (DPDC) and PDB will be heard on January 22 and the Rural Electrification Board (REB) and Dhaka Electric Supply Company Limited (DESCO) proposals on January 25.
The Power Grid Company of Bangladesh (PGCB), which receives electricity wheeling charge from its clients – distribution companies – at the rate fixed by the BERC, has sought increased charges as well. The hearing on the PGCB’s proposals to raise wheeling charges will be held on January 21.
“As we know two companies make profit every year, what is the reason behind raising the existing price of electricity?” Prof Samsul Alam, adviser of the Consumers Association of Bangladesh, told the Dhaka Tribune. “The latest increase in power tariff is likely to be a severe blow to consumers who are suffering exorbitant prices of daily essentials,” he added.
