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Fresh power tariff

Posted by bangladesh

Consumers are likely to see a further increase in both bulk and retail power prices as the Bangladesh Energy Regulatory Commission (BERC) is all set to announce the new tariff within a week.

BERC Member Selim Mahmud told bdnews24.com on Saturday evening that the new power prices were likely to come into effect from Saturday (Sep 1). "The official announcement may come on Sep 7 or 8."

The regulator called a press conference for July 26 on announcing new power tariff, but later postponed without showing any formal reason.

The government raised power tariff several occasions after it assumed the office in January 2009.

In June, the Power Development Board (PDB) sent a proposal to BERC, asking the energy watchdog to increase retail power prices by an average of 56 percent and bulk power prices by 50 percent per unit (each kilowatt hour).

BERC held a public hearing on the proposal on July 16.

Finance Minister A M A Muhith has already hinted at increasing power tariff to cut subsidies in the power and energy sectors.

Bulk and retail power prices were hiked for the last time by Tk 0.28 and 0.30 per unit respectively with effective from Mar 1.

Households now pay Tk 3.05 for per kilowatt of power consumption if their total monthly usage is below 100 units.

However, they have to pay Tk 4.29 per unit for electricity usage above 100 units and below 400 units a month. Households consuming more than 400 units have to pay a hefty Tk 7.89 per unit.

BERC official Mahmud also said that a decision was taken to put in place seven slabs for electric billing for household consumers. He said that the new structure of household electric billing would be more rational for consumers and avoid consumers being charged higher even in the case of exceeding the slabs by a small margin.

The provision will be effective with the billing for September, he said.

The new slabs are 0–75KW-hour (unit), 76–200 units, 201–300 units, 301–400 units, 401–500 units, 501–600 units and 701 units and above.

Palli Bidyut Samiti's household consumption are now divided into four slabs: 0–100 units, 101–300 units, 301–500 units and 501 units and above.

Household consumers under the Dhaka Power Distribution Company, the Dhaka Electric Supply Company, the Power Distribution Board and the West Zone Power Distribution Company now pay bills in the three-slab system : 0–100 units, 101–400 units and 401 units and above.

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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