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Electricity tariff raised by 5pc at retail level

The price of electricity was hiked by 5 percent to Tk 7.48 per kilowatt hour (kWh) at the consumer level as the government used its newly-granted power to adjust the price of energy without requiring a public hearing by the BERC.The new rate will come into effect after a gazette is issued in this regard. Although it was not clear when the new rate would be taken into calculation of electricity bills, it is believed that the additional cost is already in effect and will be seen in the total consumer electricity bill for January.

The 5 percent hike is expected to net an additional sum of around Tk 3,000 crore. The hike decision followed the Bangladesh Energy Regulatory Commission (BERC)’s technical evaluation committee’s earlier recommendation of a 15.43 percent hike in retail price, which would have yielded around Tk 8,000 crore extra.

Last month, President Abdul Hamid issued an ordinance amending the Bangladesh Energy Regulatory Commission (BERC) Act-2003, allowing the government to adjust the prices of gas and electricity without a public hearing. The Consumer Association of Bangladesh (CAB) and energy experts feared that the move would not allow consumers’ sufferings to be reflected in the adjustment of tariff. Previously, the prices of gas and electricity were adjusted by the BERC through hearings. With the amendment of the Bangladesh Energy Regulatory Commission (BERC) Act-2003, the power ministry will not be required to hold a hearing to decide new prices for gas and electricity.

Earlier on 8 January, the BERC held a public hearing on the proposal at the BIAM Auditorium in Dhaka. At the hearing, BERC Chairman Abdul Jalil said the current commission’s term will expire on 30 January and a decision regarding the tariff hike must come by then.The price hike at consumer level came less than two months after the government increased the bulk power tariff  by 20 percent.The BERC raised about 19.92 percent bulk power tariff on November 21 with effect from December 1.

Subsequently, six power distribution entities submitted their respective proposals to the BERC seeking a corresponding rise of 19.44 percent in retail power tariff at consumer level.But within a week, the Cabinet on November 28 approved an amendment to the BERC Ordinance 2022 to empower the government to set fuel tariff on its own under special circumstances without waiting for the commission’s public hearing and decision.

Earlier, the technical evaluation committee (TEC) of BERC recommended raising the weighted average tariff of electricity by 15.43 percent at the retail level against the demand of the distribution companies for hiking it by about 20 percent.The committee suggested setting the weighted average retail tariff at Tk8.23 against the existing Tk7.13 per unit (each kilowatt hour) with a hike of Tk 1.10 per unit.

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