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Rights groups oppose power tariff raise

Urge for other revenue options

Staff Correspondent
Consumers’ rights groups and left-leaning political parties yesterday strongly opposed the government's plan to increase the bulk power tariff and urged the government to look for other revenue sources.
Consumers were already cornered due to the rise in electricity bills in recent times and hiking the prices further would put them under huge pressure, they said.
The observations came at a public hearing at Bangladesh Energy Regulatory Commission (Berc) in the capital on Power Development Board's (PDB) last month's proposal to raise bulk power tariff by 50 percent on average.
State-run distribution entities Dhaka Power Distribution Company, Dhaka Electric Supply Company, Rural Electrification Board andWest Zone Power Distribution Company are PDB's bulk buyers. PDB itselfis a distributor.
PDB had suggested Berc to increase the bulk rate to Tk 6.03 a unit (a kilowatt-hour) from the current Tk 4.02 to minimise its reliance on subsidies to buy power from oil-fired rental plants.
The state-run power distribution companies had also suggested Berc to increase retail electricity tariffs by at least 50 percent.
Consumers' Association of Bangladesh Energy' Adviser Prof Dr M Shamsul Alam, at the discussion, said the recent 7.5 percent rise in bulk rates caused retail rates to rise sharply.
Power tariff for bulk buyers was last increased in March by 7.49 percent, from Tk 3.74 a unit to Tk 4.02, and for retail users by 6.25 percent, from Tk 5.02 a unit toTk5.32.
"An increase of Tk 0.28 per unit for bulk buyers increased electricity bills of consumers by Tk 1,000 to Tk 3,000. We are scared to think of what will happen if the bulk rates go
up byTk2.01 per unit,” he said.
Communist Party of Bangladesh central committee member Ruhin Hossain Prince said the proposed hike would fuel inflation further and increase prices of products manufactured with the use of electricity.
He urged the government to look for alternatives to help the country come out of the electricity crisis.
He said PDB and many government officials favour increasing electricity prices, saying that tariffs in Bangladesh were one of the lowest in the region.
"But they do not say that our per capita income is also one of the lowest in the region,” he said.
Workers' Party of Bangladesh central committee member Ragib Ahsan Munna said the government should lake into consideration the purchasing capacity of consumers before increasing electricity tariffs.
Shah Moshfiqur Rahman, a college lecturer of Gaibandha representing a consumers' rights group, warned that there would be public outrage if the electricity prices again went up.
A Berc technical committee yesterday also recommended raising the bulk tariff by 21.89 percent or Tk 0.88 per unit. But Berc member Salim Mahmud said it is not mandatory for the commission to oblige.
PDB Systems and Planning Director Mizanur Rahman said not raising the power tariff would cause a Tk 12,500 crore deficit in the current fiscal year.
Even with the raise, the deficit would still stand atTk3,700 crore, he said.
Berc would soon hold another public hearing on proposals to raise retail prices. It plans to raise tariffs for both bulk buyers and consumers by this month, said an official earlier.