Bulk power tariff go up by 19.92pc22 November 2022
Staff Reporter :
The bulk power tariff has been increased by 19.92 per cent to Tk 6.20 per kilowatt hour (each unit) from previous Tk 5.17 following the review appeal of state-owned Bangladesh Power Development Board (BPDB).
The revised tariff will be effective from December, 2022.
Chairman of Bangladesh Energy Regulatory Commission (BERC) Md Abdul Jalil announced the decision to raise the tariff through a virtual press briefing on Monday.
However, the new tariff will not be effective for retail consumers. It will be effective only for power distribution companies and for some other bulk consumers.
"The change in the power tariff will have no impact on the retail level consumers for the time being," said Jalil, adding, "A new public hearing would be required for any hike in retail level."
BERC Chairman also said that the new bulk tariff was set considering Tk 17,000 crore as subsidy to be received from the government.
The BPDB filed the review appeal to the BERC on November 14 within 30 working days after its proposal was rejected by the regulator on October 13.
Before submitting the proposal, the BPDB received a nod from the government's highest policy level, the media release from BERC said.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said the government has no plan to hike the power price at the consumer level right nowdespite increasing the electricity price at the bulk level,.
Besides, the price hike in bulk level electricity will not have any effect on the consumer level right now, he added.
Nasrul Hamid said this while talking to reporters in his secretariat office on Monday.
"Prices of electricity and fuel are being adjusted all over the world due to increase of the production cost. Prices are not increasing at the consumer level right now. Whether the price will be increased or not depends on the field level information. Further decision will be taken after examining the detail information," Nasrul Hamid said.
Regarding the increase of electricity prices at the wholesale level, the State Minister said, the BERC has taken the decision after considering the matter.
They did not increase the price even by announcing and they have done it after checking everything, he added.
When asked whether there is any plan to increase the electricity price at the consumer level before the polls, Nasrul Hamid replied, "I have not even said about the increase of price. It doesn't matter a year or two years before the election as prices are now being adjusted all over the world. Now gas is buying at $ 30, which was $ seven.
Regarding the electricity supply situation, the State Minister said, "We have regularised the supply now. We are optimistic about heading towards a better situation. The deficit is slowly being adjusted."
"We don't think there is any concern about it (bulk price increase) as this will not have any impact at the moment," said the state minister.
The customer-level analysis is in progress, he said adding that the cost of power generation as well as oil and gas prices have gone up.
Therefore, BERC has made a review announcement to adjust the price.
He further said it cannot be assessed as to how much it will affect the customer level at the moment.
"It is a time-consuming matter and we want to provide uninterrupted power to the consumers. We would like to adjust the price. It may not happen right now. But in future, BERC will consider increasing it (at customer level)," said the State Minister.
The last power tariff, both in retail and bulk, was raised in March 1, 2020.