Proposal to increase electricity prices, consumers oppose

The Power Development Board (PDB) has proposed to increase the wholesale price of electricity from 1 taka 20 paisa to 1 taka 50 paisa per unit. This proposal has been rejected by politicians, business representatives, consumer rights organization CAB and stakeholders.

The PDB proposed to increase the price at a public hearing organized at the Krishibid Institution Bangladesh (KIB) auditorium located at Farmgate in the capital on Wednesday (May 20).

Meanwhile, the Bangladesh Energy Regulatory Commission (BERC) Technical Evaluation Committee has left the increase in electricity prices to the government's subsidy. The committee said this at the public hearing. BERC Chairman Jalal Ahmed and other members of the commission were present at the hearing.

PDB has proposed to increase the wholesale price of electricity from 1 taka 20 paisa to 1 taka 50 paisa per unit, citing the depreciation of the taka against the dollar and the increase in fuel prices. Now PDB sells electricity at the wholesale level for 7 taka 4 paisa. Currently, a subsidy of 5 taka 47 paisa is paid per unit for electricity sales. BERC's Technical Evaluation Committee says that if the price of electricity per unit is increased by 77 percent, there will be no subsidy.

Consumer rights organization Consumers Association of Bangladesh (CAB) gave a written statement on behalf of consumers at the public hearing. It was read out at the hearing. It called for not increasing electricity prices and said that the burden of inefficiency, system losses, delayed projects, additional and predatory costs and capacity charges (rent of power plants) in the electricity sector should not be imposed on the common consumer.

Emphasizing on ensuring good governance and accountability, the written statement of consumers further said that if the price of electricity increases, costs will increase in industry, agriculture and transportation, which will ultimately have a negative impact on the common people through increasing commodity prices. The cost of living has increased abnormally compared to the income of the lower and middle classes, and extreme pressure will be put on them.

CAB Organizing Secretary Dr. Syed Mizanur Rahman said, one thing is being said repeatedly in the price increase proposal, if the price is not increased, the government will have to provide subsidies. Everyone is only thinking about the government's profit, but they do not care that people will die.

He said, many things have changed in the country after August 5. But BERC has not undergone any changes. You say that there is no power according to the law. Where there can be talk of changing the constitution, why should the BERC law not be changed? You are taking the side of those who are illegally making these proposals instead of taking the side of the people. I would like to request you to step aside. If you do not step aside, you will become a public enemy at some point.

CPB central leader Ruhin Hossain Prince said, BERC should stop this public hearing. This hearing is no longer acceptable. BERC should now amend its own law and then hold a hearing again. The hearing that is happening now is actually a show. Every time a hearing is held, the price is increased.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) leader Jalaluddin said, "At a time when our exports are already declining, if the price of electricity increases, the industry will be hit hard."

It was said at the event that the government's subsidy in the electricity sector in the last fiscal year was about 40 thousand crore taka. In the current fiscal year, the power department has asked for an additional subsidy of another 20 thousand crore taka. This could take the total subsidy amount to 60 thousand crore taka.

PDB Chairman Rezaul Karim said, "This increase in electricity prices will not cover the entire deficit. This increase in prices could reduce the government's subsidy from one-fifth to one-fourth."

Commission Chairman Jalal Ahmed said, "Everyone's opinions have been received. After considering everyone's opinions, we will decide on the adjustment of electricity prices through the evaluation of the committee."