Power tariffs may not be raised at least over the next two years in view of economic woes of the commoners as the new government plans to cut system loss to avoid rate hikes.
With this end in view, the Ministry of Power, Energy and Mineral Resources (MPEMR) has discussed ways of reducing the system loss by 2.0 per cent to 5.0 per cent from the current 7.0 per cent, officials said.
Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Sunday instructed top officials of different power-sector entities to work for reducing the system loss, removing irregularities and cutting unnecessary costs so that tariffs need be raised.
“The instructions came during the meeting of the minister with the top power-sector officials at the secretariat,” said one official, as the newly elected Tarique Rahman government gets down to rolling out and executing its sector-wise plans.
Sources said during the past 18-month tenure, the interim government did not raise power tariffs.
Power price for both retail-and bulk-level consumers was last raised on February 29, 2024 during the regime of the previous Awami League government.
Retail-level electricity rate was raised by around 8.50 per cent, or by Tk0.70 per unit (1 kilowatt-hour) on average, while the bulk-level tariff increased by 5.0 per cent, or by Tk 0.34 paisa per unit, on average. Last year’s power-tariff hike was, however, the 14th raise in retail electricity tariff and 12th hike at bulk level over the past one and half decades, said sources.
Currently, average retail-level electricity tariff is Tk 8.95 per unit and bulk electricity tariff Tk 7.04 per unit on average.
On the other hand, the energy regulator has cut the retail price of furnace oil by Tk 15.90 per litre, an 18.48 per cent reduction, bringing it down to Tk 70.10 from Tk 86, effective from Sunday midnight.
The move is expected to significantly lower electricity generation costs for furnace oil-fired power plants.
The price revision was announced by the Bangladesh Energy Regulatory Commission (BERC) following a public hearing held on January 29.
Furnace oil prices were readjusted under Sections 34(4) and 34(6) of the Bangladesh Energy Regulatory Commission Act, 2003, BERC said in a press release issued on Sunday.
Industry insiders believe the reduction will substantially ease generation costs at furnace oil-based power plants, offering some relief to the power sector
Earlier, the Bangladesh Petroleum Corporation (BPC) had submitted a proposal to BERC on January 20, 2024 seeking a revision of the retail-level furnace oil price.
Petroleum marketing companies – Meghna Petroleum Limited, Standard Asiatic Oil Company Limited, Jamuna Oil Company Limited and Padma Oil Company Limited – subsequently submitted separate proposals seeking increases in their marketing and integrated transportation charges for furnace oil distribution until 11 July.
After holding the public hearing, BERC invited stakeholders to submit written opinions by February 3.
The commission said the revised furnace oil price was finalised after thoroughly reviewing and analysing all proposals and opinions.
In addition, the marketing charge for Padma Oil Company, Meghna Petroleum, Jamuna Oil Company and Standard Asiatic Oil Company has been fixed at Tk 0.72 per litre, while the integrated transportation charge has been set at Tk 1.20 per litre.
https://thefinancialexpress.com.bd/trade/no-power-tariff-hike-likely-in-two-years