Bulk electricity price goes up by 19.92%
The price of electricity at the wholesale level has been increased by 19.92 percent.
Price per unit has been fixed at Tk 6.20, up from Tk 5.17 earlier.
The Bangladesh Energy Regulatory Commission (BERC) took the decision today responding to a review petition filed by the Bangladesh Power Development Board (PDB) to increase the electricity price at the wholesale level. The decision comes after Bangladesh's IMF loam approval, and the IMF officials meetings with BERC and PDB, where they discussed a pricing formula. Experts worry this decision will worsen the livelihood of those already suffering from high electricity prices.
"The power sector is receiving large subsidies due to capacity charges. Around Tk 50, 000 Cr had to paid in the past 11 years to the power sector, including power plants which did not even produce," said former Professor Anu Muhammad, member secretary of the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports.
"The entire power plan of the government is not to produce electricity to the people, but rather to keep giving money to profit-making power companies. The victims, as a result, are people, in the end," he added.
"What this price hike does is insulate corruption," said Professor M Shamsul Ala, senior Vice President of Consumers Association of Bangladesh.
Earlier, Shamsul Alam had sent a proposal to the BERC to gradually decrease subsidies, so as to not increase the prices for consumers. Their main logic underlined how corruption in various parts of the energy sector.
Alam also criticised the government for initially hiking prices by citing increased global price of fuel and LNG. He also added that the long-term effects of the continuous price hike will lead aggravate the dollar crisis.