Strong opposition to power price hike proposal
Photo Collected
Jalal Ahmed, chairman of the organization, said that before approving the project, it should be sent to the Bangladesh Energy Regulatory Commission (BERC). He said, all organizations and companies have been informed by letter. The previous commission did not do this. Capacity charge (power plant rent) has increased the subsidy, to the detriment of the nation. But no Power Purchase Agreement (PPA) has been seen by BERC.
The BERC chairman said these things when he objected to taking the cost of the project from the consumer. Consumers want to know about the project from him. They alleged that various companies take up projects worth thousands of crores of rupees, then come to BERC to reconcile the costs: the commission knows nothing about the projects.
বিজ্ঞাপন
These discussions came up in the public hearing organized on the proposal to increase the price of electricity at the consumer level. BERC organized the hearing at the Krishibid Institute auditorium in the capital from Thursday morning to afternoon. The chairman said that any project in the power and energy sector should be sent to BERC before being sent to the Planning Commission. It will be confirmed.
PDB buys electricity from all government and private power plants at the fixed price as per the contract. They then sell to six power distribution companies at wholesale prices set by the government, slightly below the cost of production. PDB takes subsidy from the government to meet the deficit. But distribution companies do not get any subsidy. They run the company by selling electricity to consumers at retail prices.
বিজ্ঞাপন
In the morning, six distribution companies presented their price hike proposals one by one at the hearing. In this, the Power Development Board (PDB) has proposed an average increase of 3.24 percent. The 80 rural electricity societies under the Rural Electrification Board (REB), which is in charge of providing electricity to the rural areas of the country, have proposed an average price hike of 5.93 percent. DPDC, the power distribution company in a part of Dhaka, has applied for an average price increase of 6.96 percent. DESCO, another part of Dhaka, has proposed an average price increase of 9.67 percent. Ojopadico, which is responsible for the distribution of electricity in the western part of the country, has proposed a 9.5 percent price hike. Northern power distribution company Nesco has announced an 18-and-a-half percent price hike.
Six distribution companies have proposed to increase prices at the consumer level over the existing wholesale prices. At the same time, they said, if the wholesale price and handling charges increase, they will also have to increase the price proportionally. Earlier on Wednesday, the technical evaluation committee constituted by BERC had evaluated the request to increase the wholesale price proposed by PDB and transmission charge of PGB PLC and recommended the increase. However, consumer representatives strongly opposed the price hike on both days.
According to the report of the technical committee on the proposal of retail price, PDB’s deficit may be 75 paise per unit of electricity sold in the next financial year. REB’s deficit will be Tk 1 39 paise, DPDC’s deficit will be Tk 1 18 paise, DESCO’s will be Tk 1 16 paise, Ojopadico will be Tk 1 33 paise, Nesco’s deficit will be Tk 1 43 paise. In order to meet this deficit, the price of electricity per unit should be increased by about 14 percent. It will increase by 1 taka 25 paisa per unit.
The technical committee did not make any recommendations on the proposal to change the slabs for residential customers. They said lifting the first phase for users of more than 75 units would increase the customer’s bill. The commission will consider this matter. Apart from this the customer’s load change proposal cannot be considered. Structural changes cannot be made suddenly. Research should be done to verify the effect on the customer. The committee rejected the proposal to commercialize the electricity bills of private hospitals and educational institutions. They said, whether public or private, they should be treated as hospitals and educational institutions. Cannot be commercialized. If the price is increased, they will collect the additional bill from the people.
After the hearing, BERC chairman Jalal Ahmed said that the commission will take a decision after considering everyone’s opinions, proposals and suggestions. But of course the consumer’s interest will take priority.
The consumer rights organization Consumers Association of Bangladesh (CAB) strongly opposed the price hike. In a written statement, they demanded not to increase the price. They said that if the prices are increased, the monthly expenses will increase, and at the same time, there will be a negative impact on the common man through the increase in the price of goods. The cost of living has increased abnormally compared to the income of the lower and middle classes, which will put extreme pressure on them.
The former general secretary of the Communist Party of Bangladesh (CPB) Ruhin Hossain (Prince) proposed to provide free electricity up to 75 units for low-income people. He said that electricity is a constitutional right. It is a service sector, there is no opportunity to consider profitability. PDB has come up with new proposals to take money from people’s pockets. There is no one to watch the dumb cry of the lower and middle class, wanting to change the steps and take more money. There is no public interest in those who make such proposals. So the proposal to increase the price is unethical.
Dhaka University Associate Professor Moshahida Sultana said, what can be done to reduce the price of electricity, why there is no such plan. The prices are increased on the pretext of crisis. Capacity does not reduce charge. Professor Syed Mizanur Rahman of Daffodil University said that the government should not be a profiteer, that is the hope of the people. Electricity prices can be reduced even if considered from welfare economics. Consumers rejected the proposal to increase the price.
Journalist Shubo Kibria said that the Prime Minister of the country wants to give relief to the people, but the opposite is happening here. A government cannot be a profiteer, nor can it do business. BERC Act should be amended. Looting should come out of Bangladesh. A public hearing should be held to reduce the price.
Bangladesh Steel Manufacturers Association has submitted a seven-point demand in writing to the commission. It said that electricity prices cannot be increased under any circumstances to keep heavy industries, especially steel mills, running. Since 2020, the steel sector has been at a standstill. If the price is increased now, this industry will be destroyed.
The huge amount of capacity charges due to the idling of power plants should be phased out completely.
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