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BERC postpones on going power tariff adjustment processes

BERC postpones on going power tariff adjustment processes
Business

To avoid conflicting situation the Bangladesh Energy Regulatory Commission (BERC) has postponed the retail electricity price adjustment processes on Sunday at the commission's meeting.

The Energy and Mineral Resources Division hiked the electricity price by 5% with an executive order on 12 January.

The price and licensing regulatory body of the energy sector, BERC Chairman Md Abdul Jalil said, "If we announce another tariff order, after the ministry hiked the price with a gazette, it will create a conflicting situation. Therefore, the commission members have agreed to postpone the process," explained .

On 21 November, the BERC announced the bulk electricity tariff by 19.92% from Tk5.17 per kWh to Tk6.20 per kWh, which became effective from December.

Following the bulk tariff hike, power distribution companies and the lone transmission company appealed before the regulatory commission to adjust the retail tariff in line with the bulk one and to increase their distribution and transmission charges.

Before disposal of that appeal the Power Division of the Ministry of Power Energy and Mineral Resources, announced the new price using the recent ordinance that amended the BERC Act 2003 enabling the ministry to adjust the prices of gas and electricity bypassing public opinion.

This gazette is the first case of invoking the ordinance which was issued on 1 December last year.

On 8 January, BERC held a public hearing where officials of the distribution companies proposed full adjustment of the bulk hike to the retail level and to increase the distribution charges by average 42.73% while PGCB proposed to increase the transmission charge by 118.51%.

Analysing the proposals, BERC's technical committee, however, recommended a retail electricity tariff hike of 15.43% to Tk7.13 per kWh to Tk8.23 per kWh.

The commission was supposed to come up with an order by 30 January after analysing the post public hearing documents and arguments.

Meanwhile the government increased the electricity price by 5% on 12 January before the BERC announced the order.