Eternality of government programme

We are constantly kept on a heavy diet of big, bloated issues of politics, power and so-called principles.As a result, public sensibilities have dulled towards matters severely affecting their day-to-day life, living and even future. Otherwise, how could we quietly endure the frequent raises in electricity and fuel prices with no questions asked.
Remember, in the last UP state election in India when Priyanka and Rahul Gandhi were approaching a local teashop, some customers just walked away muttering "mehenga" (high living costs) in an apparent huff. Rahul Gandhi, a sitting MP from UP, lost the Congress cause to Mulayem Singh Yadav's son Akhilesh, who went on to become chief minister of the state. Congress got a drubbing in the hands of BSP.
Beyond the subcontinent, we have recently seen how austerity cuts in Spain and Greece agitated people manifestly demonstrating the power of civic voice. They were so worked up that they refused to see any connection between the EU stimulus package and the austerity measures enforceable for the countries.
At home, Prime Minister Sheikh Hasina inaugurated a quick rental power plant at Keraniganj on Sunday, as though there wasn't already a large number of them as bad bargain. It is the sheer number and not so much the type that is in question. She also put across a message to the people: "They should at least pay up the production costs."
Finance Minister A.M.A. Muhith in his latest meeting with IMF representatives strongly hinted at raising fuel costs with a characteristic flair -- "winter is good time for it."
There you are having increases in electricity and petroleum products, even gas, fly in your faces; these are notorious coming as they do in a host like some locust! Brace up for your own kind of budgetary gymnastics before the government does its kind of unbalancing the books in the long run! Short-term gains have a way of blurring long-term perspectives.
No discussion on the subject, not even in a one-sided parliament, and the opposition's parliamentary boycott to blame equally (lower down their list of demands bleat high living costs!). No public hearing worth the name -- just going through the motions -- and no public debate whatsoever -- just impose higher rates like an unelected or an over-elected government!
The stock argument is flat out simplistic: increasing costs of production or procurement of energy forcing the government's hands to raise the rates. Of course, there's a genuine case of cutting back on subsidies to reduce government borrowings and curb deficit financing for wealth creation through a regenerative economy. But principally at issue is: how much of the cost-sale differentiation is an outcome of management inefficiency, malpractice, corruption and pilferage and how much of it is a straightforward exercise in merely adjusting to higher costs.
The overwhelming impression is, the government is pulling wool over its eyes imposing raises in utility rates as the most convenient and expedient quick-fix adhocism. Whilst it has to meet IMF conditionalities for $ 1 billion worth of BOP support it had bargained for, one wonders why the development partners emphasise cutting back on subsidies more than stressing the government's failure to contain cost of production within limits of public affordability consistent with the social good objective?
Former US President Ronald Reagan once said: "Government is like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other."
The narrative of irresponsibility is unrolled in a chronological order. It pivots around the question raised in Prothom Alo: How much is the production cost of electricity? When AL-led Mahajote government took power, the average cost of each unit (1 kilowatt/hour) was Tk.3.50 whist the sale price was Tk.2.50. Four years on, the cost per unit is Tk.6.25. After quadruple increases in the prices, the sale price is fixed at Tk.5.75. Thus compared with 2009, the differential between cost and price has come down to Tk.0.50 only.
Why then the prospect of upward spiral in rates again?
The failures of governments during 1991-1996 and 2001-2006 in the power and energy sector created a huge gap between demand and supply. To meet the deficit, like the caretaker government preceding it, the present government too opted for diesel and furnace oil fueled quick rental-based plants on 3 to 5 years duration. Such plants meaning exorbitantly high production cost of electricity and, therefore, still higher retail prices, were originally envisaged for a limited period. This was to gain time for building gas and coal-based electric plants. The overall plan has not worked out with the result that government would pay higher for electricity and demand still higher rates from the consumers. Are we fated to accept it quietly?
Three points keep haunting: One, when would the extractive string of quick rental power plants retire and be done with? Two, let's have a mathematical picture projecting into future liabilities of such types of projects. Three, what has the government done to generate coal-based electricity, or for that matter, progress, if any made, in exploiting alternative sources of energy. Any timeframe?
Ronald Reagan again: "The nearest thing to eternal life we will ever see on this earth is a government programme."

The writer is Associate Editor, The Daily Star.
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