State-owned Bangladesh Power Development Board (BPDB) has filed a review appeal to the Bangladesh Energy Regulatory Commission to raise the bulk power tariff. “We’ve filed an appeal to the BERC on Monday (November 14) to review the decision to reject the proposal to raise bulk power tariff”, a top BPDB official told UNB on condition of anonymity.     He said before submitting the proposal, the BPDB received a nod from the government’s highest policy level. Read more: Decision on bulk power tariff ‘adjustment’ Thursday State Minister for Power, Energy and Mineral Resources Nasrul Hamid also approved the review appeal, he added.     BERC on October 13 rejected the proposal of the BPDB to raise bulk power tariff, saying that the aggrieved party can submit appeal proposal to review the regulator’s decision within 30 working days. “Keeping compliance with the 30-day tenure, we’ve submitted our review appeal”, said the top BPDB official.   A top official of the BERC also confirmed that it had received the appeal from the BPDB. He said the BERC top level is now scrutinising the appeal proposal. “But it’s not clear whether BERC will hold a fresh public hearing on the review or will arbitrarily accept the proposal and announce its decision without hearing”, said the BERC official preferring anonymity because of the sensitivity of the matter.   Read more: Bulk power tariff hike could be announced within Oct 14 While delivering a decision by rejecting the BPDB proposal on Oct 13, BERC chairman Abdul Jalil said that some of the private companies, which buy power from BPDB have not submitted their data of transactions. “There was data ambiguity. That’s why we did not analyse the impact of any rise in bulk tariff on the consumers,” he told reporters. The current socio-economic and power supply situation were taken into consideration when making the BERC decision, he noted. As a result, the electricity tariff remains unchanged in accordance with the earlier tariff announced in February 2020. The last public hearing on a proposal of the state-owned BPDB to raise bulk power tariff was held on May 18. The BPDB placed a proposal to raise bulk power tariffs by 65.57 percent at the public hearing while a technical evaluation committee of BERC recommended a 57.83 percent hike. Read more: BERC’s TEC commends a 57.83pc hike in bulk power tariff rejecting BPDB’s 65.57pc Placing the proposal, BPDB officials had said the organisation will require Tk 74,189 crore in revenue to generate 88,993 million kilowatt hours (units) of electricity to supply to the power distribution companies. "But if the BPDB sells its electricity at the existing rate of Tk 5.17 per unit, it will have to face a deficit of Tk 30,251 crore in revenue in the calendar year 2022. So, BPDB needs to raise the power tariff by 65.57 percent to Tk 8.56 per unit from Tk 5.17," said a BPDB top official at the hearing, adding that this has been calculated without the government's subsidy. The Power Division has been under tremendous pressure from the Finance Ministry to raise power tariffs. BPDB has been incurring a huge financial loss due to its purchase of electricity from private power plants at a much higher rate and sell it to the consumers at a lower rate. At the public hearing on May 18, consumer rights groups, including representatives from different business bodies, vehemently opposed any major rise in power tariff right now, as people are already struggling with high inflation caused by high commodity prices. They termed the proposal illogical and said BPDB can offset its revenue deficit through addressing irregularities, corruption and unethical practices in buying electricity from inefficient private power plants at higher rates.

A technical evaluation committee (TEC) of Bangladesh Energy Regulatory Commission (BERC) at a public hearing on Wednesday recommended a 57.83 per cent hike in bulk power tariff against 65.57 per cent sought by the state-owned the Bangladesh Power Development Board (BPDB). However, the participating consumer civil right groups including representatives from different business bodies at the hearing vehemently opposed any big rise in power tariff right now when the people are struggling with high inflation caused by high commodity prices. Also read:Public hearing on proposed hike in bulk power tariff Wednesday They termed the proposal an illogical one and said the BPDB can offset its revenue deficit through removing irregularities, corruption and unethical practice in buying electricity from inefficient private power plants at higher rates. The 5-member highest decision making body of the BERC did not give any decision on the appeal of the BPDB as the relevant law allows the watchdog body to take 90 days before a final decision. The public hearing was held at the BIAM Auditorium in the city with BERC chairman Abdul Jalil in the chair while all the four other members of the commission were present. BPDB’s General Manager (commercial) CFK Musaddek Ahmed placed the bulk power tariff proposal at the hearing while advisor of Consumers Association of Bangladesh (CAB) Dr M Shamsul Alam, former BUET professor Dr Ijaz Hossain, Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Vice President Mostafa Azad Chowdhury, former president Metropolitan Chamber of Commerce and Industry (MCCI) Barrister Nihad Kabir, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) senior assistant secretary Sajib Hossain, among others, opposed the proposal. Placing the proposal, BPDB general manager said the organization will require revenue of Tk 74,189 crore to generate 88,993 million kilowatt hours (units) of electricity to supply to the power distribution companies. “But if the BPDB sells its electricity at the existing rate of Tk 5.17 per unit, it will have to face a deficit of Tk 30,251 crore in revenue in the calendar year 2022. So, the BPDB needs to raise the power tariff by 65.57 per cent to Tk 8.56 per unit from Tk 5.17”, he told the hearing, adding that this has been calculated without the government’s subsidy. He also claimed the increase in the prices of imported gas, liquid petroleum fuels and coal have increased its power generation cost which compelled the organization to move the power hike proposal. Also read: BPDB to incur over Tk 30,000 cr loss if bulk power tariff not raised BERC technical evaluation committee member M Quamruzzaman disagreed with the calculation of the proposal and said the organization could raise its bulk power tariff by 57.83 per cent to Tk 8.16 per unit from existing Tk 5.17. Opposing both the proposals of BPDB and the TEC’s recommendations, Dr M Shamsul Alam raised about 60 questions to challenge the justification of the BPDB’s arguments. He said BPDB has been buying electricity from very inefficient power plants at much higher rates without maintaining any merit orders. In this case, the efficient and lost cost power plants of BPDB are being kept idle or suspended. “Purchase of electricity from higher rated plants instead of lower rated plants is a crime anti-nation activity”, he added. He said if the efficient combined cycle power plants are given preferences in power generation, the cost of power generation will substantially fall and the BPDB will not require raising the power tariff. Dr Ijaz Hossain said power tariff could be raised in phases, not in one go. A 57 per cent hike in a single phase has never happened. “You have to look at the irregularities and corruption to lower the power production cost”, he told BERC.

A public hearing on a proposal for raising electricity tariff at bulk level will be held on Wednesday. Bangladesh Energy Regulatory Commission (BERC) will hold the hearing at Biam Auditorium in the city from 10.30 am to 5 pm in response to an appeal of the state-run Bangladesh Power Development Board (BPDB). Also read: BPDB to incur over Tk 30,000 cr loss if bulk power tariff not raised The BPDB moved the proposal urging the energy regulator to set the bulk power tariff at Tk8.58 instead of existing Tk 5.17 per kilowatt hour (each unit). The BPDB claims in its proposal to the energy regulator that it will incur a loss of Tk 30,251 crore in the current fiscal year if the bulk tariff is not raised. It attributed to the increasing fuel cost and other soaring expenses for financial losses saying that the production cost of electricity has gone up to Tk 4.24 per unit in 2022 from Tk 2.13 in the fiscal year 2019-20. Power industry insiders said that it is obvious that if the bulk electricity tariff is raised, it will ultimately push up the tariff at retail level. Any rise in bulk tariff will be applicable for the power distribution companies as they are the bulk consumers. They buy electricity from BPDB in bulk and then sell it to public at retail rates. So, the public hearing on retail tariff will come consequently, said an industry insider. Also read: Public hearing on proposed hike in bulk power tariff May 18 All the state-owned power distribution companies have already submitted their respective proposals to the BERC to raise the power rates at retail level. But this time, the BERC is going to hold public hearing on bulk tariff proposal keeping pending the request for raising retail price.

The state-owned Bangladesh Power Development Board (BPDB) will incur an annual loss of Tk 30,251.8 crore if the bulk power tariff is not raised. Such a claim was made in a proposal placed by the BPDB to the Bangladesh Energy Regulatory Commission (BERC), appealing to raise the bulk power tariff in order to offset its loss. Responding to the appeal, the energy regulator decided to hold a public hearing on May 18 as per the BERC Act 2003.  In the proposal, the BPDB also claimed that it will require approximately Tk 74,189 crore to generate 88,993 million units of electricity in the calendar year 2022. “The bulk power tariff needs to be readjusted considering the possible hike in gas tariff. The BPDB is expecting an income of Tk 43,937.2 crore. So, the gap between income and expenditure will be Tk 30,251.8 crore," said the BPDB in the proposal. It attributed blamed increasing fuel costs and other soaring expenses for its losses, saying that the production cost of electricity has gone up to Tk 4.24 per unit in 2022 from Tk 2.13 in the fiscal year 2019-20. The state-run Bangladesh Power Development Board moved the proposal a few months back urging the energy regulator to set the bulk power tariff at Tk8.58 instead of the existing Tk 5.17 per kilowatt-hour.