CAB demands return of BERC’s authority to fix gas, electricity tariffs

Staff Reporter :
Civil Society members and the Consumer Association of Bangladesh (CAB), a consumer rights organisation, have demanded to return power to Bangladesh Energy Regulatory Commission (BERC) with a view to empowering the sole authority to determine the price of electricity and energy to protect the rights of consumers.
The speakers made the demand at a civic meeting titled ‘Fuel crisis and renewable energy development’ organised by CAB at CIRDAP Auditorium in the city with its Chairman Ghulam Rahman in the chair on Saturday.

Bangladesh Workers Party President Rashed Khan Menon, MP, and Shamim Haider Patwari, MP, CAB Power and Energy Grievance Investigation and Research Commission Member Professor MM Akash, CAB Member Professor Sushant Kumar Das, Architect Iqbal Habib, Legal Adviser Barrister Jyotirmoy Barua, CPB General Secretary Ruhin Hossain Prince and BSD Assistant General Secretary Rajekuzzaman Ratan, among others, took part in the dialogue.

Professor M Shamsul Alam, Member of CAB Electricity and Energy Complaint Investigation and Research Commission, gave the opening speech at the meeting.
M Shamsul Alam said, “according to Article 7 of the Constitution, the owners of the republic are the people or the common consumers of Bangladesh. As the ultimate expression of the will of the people, the Constitution of the country is the supreme law of the Republic.”

Professor Badrul Imam, a member of CAB Electricity and Energy Complaint Investigation and Research Commission, presented 13 point proposals to reform the gas sector in the civic meeting to ensure consumer’s rights in the country.

The proposals are: 1. Any non-competitive investment in the development of electricity, energy and renewable energy sectors shall be prohibited by law, 2. The government shall not engage in joint ownership of power and energy business with the private sector and shall not transfer shares of any government-owned company to the private sector, which to be ensured by law, 3. All officials both the power and energy departments should be withdrawn from the board of directors of all government and joint-owned companies belonging to the power and primary energy sector, 4. The activities of the companies/organizations of both the sectors should be managed independently by their own technical manpower. For that, the Ministry as the upstream regulator should be limited only to formulating rules and policies and ensuring administrative oversight and accountability of licensees in following laws, rules and regulations and implementing regulatory orders. The downstream regulator BERC should be independent and impartial.

The proposals also include: 5. More than 50 per cent of electricity and gas generation on cost basis without profit must be government owned. Government will provide power and energy services only on cost basis, not hardship plus. 6. Gas Development Fund, Power Development Fund, Energy Security Fund shall be considered as consumer’s equity investment in gas exploration, power generation and energy import respectively, 7. Short and medium-term plans should reduce the proportion of coal and oil in the primary fuel mix. Fuel imports should be controlled by increasing own gas exploration and reserves and renewable power generation. 8. Receipt/reimbursement of compensation should be ensured for such damage from other related sources including climate fund and not debt. That compensation should be guaranteed by investment law in capacity building of victims, 9. Electricity, fossil and renewable energy development policies, laws, regulations and plans must be consistent with the Paris Agreement on climate change.

The propositions further include: 10. Energy Price Stabilised Fund should be formed to control the increase in the price of electricity and primary fuel in order to protect energy security, 11. (a) Prompt Electricity and Energy Supply (Special Provisions) Act-2010 should be repealed and (b) Section 34(a) added by amendment to Bangladesh Regulatory Commission (BERC) Act-2003 should be repealed as it is contrary to the protection of energy rights of consumers and energy justice. Besides, BERC should be given back the sole jurisdiction to determine the price of electricity and fuel, 12. Supplementary agreement already executed between Bapex and Santosh to drill Magnama 2 exploration well; BERB and Summit Power Ltd. Among these executed Power Purchase Supplemental Agreement and BPDB and Summit Power Ltd.

In the proposals it was mentioned that electricity purchase supplementary agreement of Meghnaghat Power Plant executed in between is illegal, against public interest and contrary to energy justice, so all these agreements should be cancelled. All other contracts accused of similar charges should also be canceled after scrutiny, and 13. All contracts executed in power and energy development should be in accordance with the approved model contract of proper legal establishment with a view to transparent execution in the statutory process.