The Hindu Business Line : Bangladesh plans to raise power tariff at retail level

DHAKA: Bangladesh plans to increase the power tariff at retail level, after the energy starved country raised the electricity prices at bulk level five days ago to reduce the annual operating losses of Taka 4.8 billion, officials said here today.

“We plan to increase the tariff at retail level as the state run power distribution agencies suggested the hike to cope with the increased tariff at the bulk level,” Bangladesh Energy Regulatory Commission (BERC) officials said.

BERC officials said the government and semi-government distribution agencies including Dhaka Power Distribution Co (DPDC) and Dhaka Electric Supply Co (DESCO) suggested the increase after the regulatory authority enforced the new tariff line for the bulk purchasers to help reduce the huge losses of Bangladesh Power Development Board (BPDB).

BPDB accounts for 60 per cent of the country's total power generation while the rest 40 per cent comes from the private or independent power producers. The BPDB purchases electricity from private players at higher prices and resells it to consumers at su bsidised rates, a scenario which is blamed for the major losses incurred by the power board.

BERC increased the tariff for the bulk level purchases by 16 per cent from October 1, which officials expect will help cover the annual operating losses of Taka 4.8 billion.

Bangladesh has been facing acute power shortage for the past several years as the public and private sector power plants generate only 4,800 mega watt (MW) power against an estimated demand for 6,000 MW. - PTI

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