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Prices of bulk power go up by 16pc

Tariff for consumers unchanged for now

Staff Correspondent
Average bulk power tariff has been increased by 16 percent to Tk 237 per kilowatt, to be effective from tomorrow, which is Tk 2.04 right now.
The latest power tariff adjustment is the first by Bangladesh Energy Regulatory Commission (BERC) since its formation.
BERC Chairman Goiam Rahman yesterday formally announced the new rate at a media conference held in the commission’s office.
The retail rate for consumers
will however remain unchanged for now.
"The distribution companies are required to formally apply to the commission for increasing the retail tariff," Goiam Rahman said replying to a question of journalists.
Rahman hoped that the distribution companies will be able to adjust a portion of the tariff hike by reducing their existing system loss and high administrative cost
Power Development Board (PDB) earlier had advised BERC to increase power tariff by4 T pe^ent. but the commission approved the announced new rate considering all factors involved, the chairman said.
The new rate will be effective for only those distribution companies who purchase power from PDB, he added.
According to the order read out by the BERC chairman, the new bulk rates have been fixed atTk2.41 per kilowatt for 132 KV distribution lines, and Tk 2.44 per kilowatt for 33 KV lines.
However, a special rate of Tk 2.30 per kilowatt has also been fixed for Rural Electrification Board (REB).
'The lower rate for REB has been fixed considering the socioeconomic condition of the rural people," the BERC order said.
BERC asked PDB to chalk out a Service Quality Programme, and to • submit it to the commission by January 15,2009.
The commission also asked PDB to formulate a five-year power plan by considering its demand forecast, and asked the board to submit the plan to BERC by February 01,2009.
The plan must reflect PDB's production cost and the cost of procuring power generated by ^dependent power plants and rental power plants, the order said
It also directed PDB to assure e commission that the board has
an ’PPropriatc ponloho „f gm„Mon ,n
BERC asked PDB to submit Mhet related reports too, before wggesti ng further tariff hike
The > ommission also directed
"Wd'ng bills from consumers so Pwutandmg bill can continue to -T^aid beyond three months to Inai""'11' BERC
PoweS b'”h bul1
a mass hearing on
the issue where 20 representatives from organisations concerned and other individuals participated.
The commission took PDB's plea and the arguments of the representatives in consideration before taking the decision to hike bulk tariff.
BERC was established on March 13, 2003 through a legislative act. The commission became effective on April 27,2004 with the appointment of its members, and has the mandate to regulate gas, electricity and petroleum products in the country.