Electricity price hike again

The Bangladesh Energy Regulatory Commission (BERC) decided to increase electricity price again. At the subscriber level it was raised by 35 paisa per unit on average. The price will be active from next December.

BERC informed the price hike decision at a press conference on Thursday.

Price of electricity was raised 7 times at the retail subscriber level in the last 6 years from 1^st March 2010 to 1^st September 2015. After an interval of two years the price of electricity was raised again.

In the press conference BERC said, the retail price rate of all electricity distribution organizations and companies was raised by 35 paisa considering the increase of expenditure in all the distribution organizations and companies. That means the growth rate is 5.3 percent.

Energy Regulatory Commission organized mass hearing in last September after scrutinizing the proposals of distribution companies. There proposals came in to increase electricity wholesale price nearly 15 percent per unit and from 6 to 14.5 percent at the subscriber level.

Of those proposals, DPDC proposed for raising price by 6.24 percent, DESCO for 6.34 percent, WZPDCL for 10.36 percent, REB for 10.75 percent and PDB for 14.5 percent.

According to BERC rules there is obligation of declaring commission’s decision within 90 working days of holding the mass hearing.

But according to today’s decision electricity price was not raised in the wholesale level.

BERC said, decision was taken for not raising electricity price in the wholesale level considering all the matters such as- considering interest of all groups of subscribers for fixing electricity price, financial affect on different organizations and decreasing pressure on poor and ultra poor people.

Secretary Md. Mahbubor Rahman said, the minimum electricity charge was withdrawn. As a result, bill of 30 lakh life line subscribers will come down. Besides, for the 60 lakh life line subscribers of BREB the retail price rate will be unchanged. As a result electricity bill will not increase for 38 percent of the total subscribers in the country.

AH