The Power Grid Company of Bangladesh has become an unprofitable agency due to officials’ lack of efficiency and increased corruption, the association of consumers has claimed.
Having lost Tk3 crore for the first time in 2013-14 fiscal year, the company has recently submitted a proposal to hike transmission charges.
The matter came up on the second day of public hearing at the Bangladesh Energy Regulatory Commission (BERC).
The Power Grid Company of Bangladesh (PGCB), which receives electricity wheeling charge from its clients – the distribution companies – at the rate fixed by the BERC, has sought increased charges.
Md Shamsul Alam, energy adviser of the Consumer Association of Bangladesh (CAB), said BERC should not make any decision over transmission charge until a disagreement between PGCB and Power Development Board (PDB) is resolved.
The PDB says the price of assets related to the transmission system should be Tk8,500 and the PGCB says it should be Tk2,200 crore.
Suggesting the two entities to come to an agreement within seven days, Shamsul said: “For the inefficiency of officials and increased corruption at PGCB, it has become an unprofitable agency.”
Since its inception in 2003-04 until 2013-14, Power Grid was never a losing concern. It made Tk7 crore profit in its first year and the figure rose to Tk169 crore in 2012-13.
The adviser also said: “After Abul Kalam Azad, secretary of the Prime Minister’s Office, became chairman a few years back, the company’ [Power Grid] profit margin started narrowing. I think he should be removed as soon as possible.”
PGCB is mainly concerned with the operation, maintenance and development of the power transmission system all over Bangladesh.
Before Power Grid was formed, the PDB used to look after the transmission system. Power Grid got full responsibility in December 2002.
The power generated by different state-owned and private power plants all over the country is evacuated and transmitted through Power Grid’s integrated grid system by 230KV and 132KV lines and substations.
Power Grid General Manager (Finance) Mohammed Salim presented their proposal before the commission. The technical evaluation committee of BERC yesterday recommended increasing of the wheeling charge by 1.53%. The recommendation was made in a public hearing on hiking power price.
BERC Chairman AR Khan, members Salim Mahmud, Delwar Hossain, Md Maksudul Haque and Rahman Murshed, along with other stakeholders attended the public hearing at TCB Bhaban in the capital.
AR Khan said: “if any company does not do the energy audit, then we will accept any proposal of price hike from the company.”
Power Grid proposed that BERC raised the wheeling charge at 132KV level by 70.77% or Tk0.3873, and at 33KV level by 70.06% or Tk0.3896 per unit. The current rates are Tk0.226 and Tk0.2291 per unit.
The company claims that it will suffer losses worth Tk818 crore for the ongoing 2014-15 fiscal if the price is not hiked.
As per the BERC schedule, the public hearing on raising the existing electricity retail tariff of the state-run PDB and Dhaka Power Distribution Company Limited will be held today.
