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Power tariff to go up

Md Fazlur Rahman
Electricity tariff for retail customers could go up this month as the government gave a nod to the energy ministry's move to rationalise the price for cutting subsidies. Sources at Bangladesh Energy Regulatory Commission (BERC) and the power, energy and mineral resources ministry said the retail power tariff might be hiked later this month. The tariff might be raised on the basis of proposals from the distributors to the energy regulator in December 2012. The utility companies have proposed a hike between 9 and 12 percent.
The issue of power tariff hike surfaced again after Prime Minister Sheikh Hasina on Thursday endorsed the power ministry's plea to adjust the power and gas tariffs.
The PM has given her nod for rationalisation of power and gas tariffs, prime minister's energy adviser Tawfiq-e-Elahi Chowdhury told reporters.
She, however, directed the officials concerned to keep consumers' affordability under consideration while hiking the price.
Proposals from different distribution companies have been pending with the BERC, mentioned the adviser.
"It's up to the commission whether the tariff will be increased or not. It’s not the government to dictate what to do," Tawfiq told The Daily Star on Friday.
In September 2012, the BERC last increased the retail power tariff - the rate the distributors charge end-users -by 15 percent to Tk5.75 per unit amid opposition from consumers and rights groups.
This was the fifth increase in retail power tariff since the last Awami League government assumed office in 2009. Since February 2011, the commission has increased retail tariff by 43.75 percent (from Tk4 a unit to Tk5.75 a unit).
However, the last hike was much lower than the distributors' proposal.
Sources said following proposals from distributors in December 2012, the BERC had taken preparation to
increase the tariff by about 5 percent. But the plan had to be postponed following intervention by the prime minister, who was opposed to raising of tariff in an election year.
BERC member Salim Mahmud yesterday said, "We've not adjusted the tariff for a long time. I think it should be adjusted.”
"But as in the past, we will take into consideration the interests of all groups," he added.
PDB Chairman Abduhu Ruhullah said the tariff should be hiked as the distributors are incurring huge losses stemming from subsidies.
The government had to spend nearly Tk6,000 crore in power subsidies last year. The figure might remain the same this year, he mentioned.
Former caretaker government adviser Akbar Ali Khan said consumer will see what logic the BERC puts forward for increasing the power tariff.