• Saturday, Jul 11, 2020
  • Last Update : 02:17 am

Paying for power

  • Published at 05:04 pm November 24th, 2017
  • Last updated at 01:25 am November 25th, 2017
Paying for power
Bangladesh lags well below the world average when it comes to providing electricity for its people. Right now, half of the rural population of the country has no access to electricity, and this does not bode well for our energy targets for 2030. The solution is for electricity prices to be raised so as to reflect the market price -- only then will the country be able to pay for building more power plants and laying down distribution lines in areas deprived of power. However, instead of a sudden hike in electricity prices next year, a better strategy would be to make a moderate increase, thereby gradually signalling to the market that electric and gas prices will be going up. As we are importing LNG to slowly replace the wasteful usage of undervalued and government-subsidised local natural gas, electricity prices will have to go up by a considerable amount, and that is a good thing. The sooner we prevent wasteful new investments -- heavily reliant on electricity and gas -- like fertiliser, steel, and cement mills, the better off we will be, as these may be infeasible later on due to high gas and electricity prices. While there may be some resistance to higher electricity prices at first, it is the ony way to ensure reliable power supplies and support industrial growth in the long run. The government cannot afford to ignore the forces of the market -- expensive subsidies which artificially keep gas and electricity prices down do us more harm than good.
50
50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail