Aminur Rahman Rasel bdnews24.com Correspondent
Dhaka, June 6 (bdnews24.com) ? The Power Development Board (PDB) has proposed to the Bangladesh Energy Regulatory Commission (BERC) to raise electricity tariff at bulk level by 50 percent per unit (each kilowatt hour).
PDB as also urged BERC to make the proposed rates effective from July 1.
The proposal said that after the proposed price comes into effect, the retail power price needs to be hiked too, otherwise, power distribution companies will face losses, it added.
If the proposal is accepted, the government will increase bulk and retail power tariffs for the third time this year.
BERC member Selim Mahmud told bdnews24.com that the final decision to refix the power tariff would be made after holding an open meeting and a mass hearing.
State-run Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) on May 24 sent a proposal to the country's energy watchdog, BERC, to increase gas prices, except at the domestic consumer level.
The PDB proposed raising bulk electricity tariff by 50 percent to Tk 6.03 per unit from Tk 4.02.
"If the new power tariff does not come into effect, the government will have to provide subsidies of nearly Tk 120 billion to the power sector in the next fiscal. If the proposal is approved, the amount will go down to Tk 35 billion," the proposal said.
PDB Chairman A S M Alamgir said they proposed the increase in power tariffs for lack of government subsidy in view of the increasing fuel cost for power production.
"The production cost of per unit power is about Tk 5.50 and it will go up to Tk 6.87 next year," he added.
At present, 30 percent of the total electricity is produced from fuel like diesel and furnace oil, while the rest is generated from gas, coal and water.
The government has increased bulk and retail power prices for five times during its tenure since January 2009, leaving the sword of Damocles hanging over the head of retail consumers.
Bulk and retail power prices were hiked by Tk 0.28 and 0.30 per unit respectively from Mar 1.
PDB purchases power from rental and IPP power plants, Electricity Generation Company of Bangladesh (EGCB) Ltd and Ashuganj Power Station Company Ltd (APSCL).
It sells the electricity to its bulk consumers ? Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company Ltd (DESCO), Rural Electrification Board (REB) and to its retail consumers ? in its own distribution regions at the price fixed by the BERC.
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Source: bdnews24.com
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