HC rule against gas, power price hike
Staff Reporter :
The High Court on Monday questioned the legality of the government’s latest decision to hike gas and electricity prices.
In response to a writ petition, the HC issued a rule upon the Energy Regulatory Commission to explain why the decision to hike the prices of gas and electricity would not be declared illegal.
In the rule, the court also asked the Commission to explain why it should not be directed to reconsider the price hike decision.
The HC bench of Justice Naima Haider and Justice Mustafa Zaman Islam came up with the rule after hearing the writ petition filed by Consumers Association of Bangladesh (CAB).
The organisation submitted the petition in September challenging the legality of the decision taken by Energy Regulatory Commission (BERC) on August 27, petitioner’s lawyer told media.
He said the Commission increased the prices in violation of the relevant law.
As per the new increased tariff from September 1, the retail price of electricity is Tk 6.33 a unit against the previous Tk 6.15 – a 2.93 percent increase.
For household gas use, the tariff for a single burner stove increased to Tk 600 a month against Tk 400 while that of a double-burner stove
Tk 650 from Tk 450. Industries that turn gas into electricity through generators will see gas tariff double Tk 8.36 from Tk 4.18 per cubic metre. This was a big 26.29 percent jump.
This is the first hike in gas tariff since 2009 though CNG prices went up twice in 2011. On the other hand, the retail power price increased on six occasions in the last six years — the last one in March 2014.
After the price hike experts and business people have expressed their dissatisfaction on the matter.
Prof Shamsul Alam, an energy expert, said BERC is an independent body but it had not taken the decision independently; rather it was influenced by the Power and Energy Ministry. “This is unacceptable from the legal point of view.”
The BERC made the announcement a day after a meeting of the Energy and Power Divisions officials at the Prime Minister’s Office, sources said. The meeting instructed the divisions to make a move to increase the tariffs.
Shamsul Alam also said the hike would have a chain effect on the prices of products as their production depends on energy and power, meaning the hike will squeeze the purchasing power of people.
Abdul Matlub Ahmad, President of the Federation of Bangladesh Chambers of Commerce and Industry, said the hike of gas tariff would be tolerable if the government can ensure availability of energy for industries.
He said the government should cut diesel prices so people depending on gas can shift to oil. “In such cases, we will be able to give more gas to industries. Besides, the gas connections should also be made available to industries.”
Jahangir Alamin, immediate-past president of Bangladesh Textile Mills Association (BTMA), said, “We will lose our competitiveness further on the world market due to price hike of natural gas.”
The BTMA textile millers are the highest gas consumers in the country as they run spinning, weaving, dyeing and finishing units with a huge pressure of gas.
“The price of raw finished goods will increase because of the hike in gas tariff. But we will not get additional prices from the buyers,” Jahangir said.
The High Court on Monday questioned the legality of the government’s latest decision to hike gas and electricity prices.
In response to a writ petition, the HC issued a rule upon the Energy Regulatory Commission to explain why the decision to hike the prices of gas and electricity would not be declared illegal.
In the rule, the court also asked the Commission to explain why it should not be directed to reconsider the price hike decision.
The HC bench of Justice Naima Haider and Justice Mustafa Zaman Islam came up with the rule after hearing the writ petition filed by Consumers Association of Bangladesh (CAB).
The organisation submitted the petition in September challenging the legality of the decision taken by Energy Regulatory Commission (BERC) on August 27, petitioner’s lawyer told media.
He said the Commission increased the prices in violation of the relevant law.
As per the new increased tariff from September 1, the retail price of electricity is Tk 6.33 a unit against the previous Tk 6.15 – a 2.93 percent increase.
For household gas use, the tariff for a single burner stove increased to Tk 600 a month against Tk 400 while that of a double-burner stove
Tk 650 from Tk 450. Industries that turn gas into electricity through generators will see gas tariff double Tk 8.36 from Tk 4.18 per cubic metre. This was a big 26.29 percent jump.
This is the first hike in gas tariff since 2009 though CNG prices went up twice in 2011. On the other hand, the retail power price increased on six occasions in the last six years — the last one in March 2014.
After the price hike experts and business people have expressed their dissatisfaction on the matter.
Prof Shamsul Alam, an energy expert, said BERC is an independent body but it had not taken the decision independently; rather it was influenced by the Power and Energy Ministry. “This is unacceptable from the legal point of view.”
The BERC made the announcement a day after a meeting of the Energy and Power Divisions officials at the Prime Minister’s Office, sources said. The meeting instructed the divisions to make a move to increase the tariffs.
Shamsul Alam also said the hike would have a chain effect on the prices of products as their production depends on energy and power, meaning the hike will squeeze the purchasing power of people.
Abdul Matlub Ahmad, President of the Federation of Bangladesh Chambers of Commerce and Industry, said the hike of gas tariff would be tolerable if the government can ensure availability of energy for industries.
He said the government should cut diesel prices so people depending on gas can shift to oil. “In such cases, we will be able to give more gas to industries. Besides, the gas connections should also be made available to industries.”
Jahangir Alamin, immediate-past president of Bangladesh Textile Mills Association (BTMA), said, “We will lose our competitiveness further on the world market due to price hike of natural gas.”
The BTMA textile millers are the highest gas consumers in the country as they run spinning, weaving, dyeing and finishing units with a huge pressure of gas.
“The price of raw finished goods will increase because of the hike in gas tariff. But we will not get additional prices from the buyers,” Jahangir said.
