Hike in power tariff

The government has announced increase in the price of electricity for retail consumers with antedated effect from December 1. And this will be done in two phases; the second hike shall become effective from February next year. In the process there will be an increase of 21.28 percent in the price; the public will have to pay Tk. 5.2 as against the current rate of Tk. 4.16. Only this February the BERC had effected a 5 percent increase across the board.
The rationale tendered by the government that the increase will lessen the burden of subsidy is untenable. We have seen that increase in the price of electricity has a correlation with increase in corruption in this sector. Manipulation with the bills is done in exchange for graft at various levels which deprives the government exchequer. The government would do well to enhance efficiency in collection of dues and ensure reduction in system loss. It is also a fact that the degree of manipulation and evasion is less when the rate is moderate and affordable.
If the increase is to offset the burden of subsidy for running the rental power stations did not the government see it coming? In fact experts had warned the government of the dire consequences of oil-fired quick rental plants rather than coal.
The hike will further increase the burden on the general public, coming as it does in the backdrop of the increase in fuel prices, a 12 percent inflation rate and a general condition where the fixed and middle income groups are finding it increasingly difficult to make both ends meet.
The solution to the problem is not transferring the cost to the consumers who are already reeling under a severe economic strain and the decrease in their purchasing power. While we commend the government for deciding not to go for any more rental power plants it has to address other areas of concern like inefficiency, corruption and systems loss in this sector.
While the rental power plants added about 2500 MW to the national grid we lost around 1000 MW due to the shutting down of some of the old power generation plants due to technical faults and shortage of gas. Therefore, resuscitating the old power plants should be one of the top priorities of the government.