BERC postpones ongoing power tariff adjustment processes

Staff Reporter :
Bangladesh Energy Regulatory Commission (BERC) has postponed the retail electricity price adjustment processes at its meeting on Sunday to avoid conflicting situation.
The Energy and Mineral Resources Division hiked the electricity price by 5pc with an executive order on 12 January.
BERC Chairman Md Abdul Jalil told the journalists, “We have postponed the price adjusting procedures. If we announce another tariff order, after the ministry hiked the price with a gazette, it will create a conflicting situation.”
The commission members have agreed to postpone the process for this reason, he said.
The BERC announced the bulk electricity tariff by 19.92pc from Tk5.17 per kWh to Tk6.20 per kWh, on 21 November, which became effective from December.
Afterward increasing the bulk tariff, power distribution companies and the lone transmission company appealed before the BERK to adjust the retail tariff in line with the bulk one and to hike their distribution and transmission charges.
Before clearance of that appeal the Power Division of the Ministry of Power Energy and Mineral Resources, announced the new price using the recent ordinance that amended the BERC Act 2003 enabling the ministry to adjust the prices of gas and electricity bypassing public opinion.
This gazette is the first case of invoking the ordinance which was issued on 1 December last year.
BERC held a public hearing on 8 January, where officials of the distribution companies proposed full adjustment of the bulk hike to the retail level and to increase the distribution charges
by average 42.73pc while PGCB proposed to increase the transmission charge by 118.51pc.
Analysing the proposals, BERC’s technical committee, however, recommended a retail electricity tariff hike of 15.43pc to Tk7.13 per kWh to Tk8.23 per kWh.
The commission was supposed to come up with an order by 30 January after analysing the post public hearing documents and arguments.
In the meantime, the government increased the electricity price by 5pc on 12 January before the BERC announced the order.