BERC
12kg LPG cylinder cost declines by Tk 65
Price of liquified petroleum gas (LPG) has decreased by Tk 5.39 per kg to Tk 102.70 from previous price of Tk 108.09 per kg as Bangladesh Energy Regulatory Commission (BERC) has announced its latest price for the month of January.
As per the new price, 12kg LPG cylinder cost has lowered by Tk 65 as a retail consumer will get it at Tk 1232 instead of Tk 1297.
LPG prices for other sizes of cylinders – from 5.5kg to 45kg – will go down rationally, said BERC chairman Abdul Jalil, who announced the new prices at a virtual press briefing.
Read more: Industries can now use LPG as a reliable energy solution: Speakers
As per the announcement, the price of “auto gas” (LPG used for motor vehicles) also decreased to Tk 57.41 per litre from previous price of Tk 60.41 per litre, down by Tk 3 per litre.
The new prices will be effective from 6 pm today (January 2, 2023).
The price of LPG, marketed by state-owned LP Gas Company, will remain the same as it is locally produced with a market share of less than 5%.
Read more: 12kg LPG cylinder to cost Tk 46 more
The LPG price went up to the highest, Tk 1,439 (per 12kg cylinder), in the local market, following the start of the Russia-Ukraine war in February last year.
LPG price in Bangladesh was the lowest at Tk 1,225 for a 12kg cylinder in January last year and it witnessed continuous hikes in February, March and April in 2022.
If BERC delays decision on retail power hike proposals, govt to decide: Nasrul Hamid
State Minister for Power, Energy and Mineral Resources Nasrul Hamid has said that if the Bangladesh Energy Regulatory Commission (BERC) delays to decide on retail power hike proposals, then the Power Division will make its own decision.
He made the remarks while talking to reporters at the sideline of a stakeholders meeting on “Integrated Energy and Power Master Plan (IEPMP)”, organized by the Japan International Cooperation Agency, at a hotel in the city on Tuesday.
Outgoing Japanese Ambassador Ito Naoki also addressed the event.
Read more: BERC now to consult with govt before any move on retail power tariff hike proposals
Responding to a question on the role of energy regulator after the amendment to the BERC Act 2010 which gives the government arbitrary authority to increase the prices of power and energy bypassing the public hearing process, the State Minister said if the BERC takes so much of times in taking decision on price adjustment issue, then the government will take decision on its own. .
He said normally BERC will follow its own process to decide on the price adjustment. “But only in an emergency situation, the government will take the decision."
The BERC raised about 19.92 percent bulk power tariff on November 21 with effect from December 1.
Subsequently, six power distribution entities submitted their respective proposals to the BERC seeing a similar 19.44 percent hike in retail power tariff at consumer level.
Read more: Raising retail power tariff: 3 more distribution companies submit proposals
But within a week, the Cabinet on November 28 approved an amendment to the BERC Ordinance 2022 to empower the government to set fuel tariff on its own under special circumstances without waiting for the commission's public hearing and decision.
Nasrul Hamid said the government has been working to provide electricity at an affordable price.
“But the situation is not in the hands of the government as we have to depend on the global market for primary fuel import”, he added.
He, however, said the government is thinking of considering the petroleum fuel price adjustment in consistency with the global downtrend in energy price.
“We’ve asked the officials to examine whether we could adjust prices every three months keeping in line with the global market,” he added.
Raising retail power tariff: 3 more distribution companies submit proposals
Three more state-owned distribution companies submitted their respective proposals to the Bangladesh Energy Regulatory Commission (BERC) on Thursday to raise power tariff at the retail level.
These distribution entities are: Dhaka Power Distribution Company Limited (DPDC), Dhaka Electric Supply Company Limited (DESCO), and West Zone Power Distribution Company Limited (WZPDCL).
BERC Member (tariff) Mohammad Bazlur Rahman confirmed submission of the power distribution entities’ proposals.
Official sources said there are six power distribution entities in the country and all were asked by the government to submit their respective proposals on retail power tariff hike as early as possible, following the announcement on the new bulk power tariff.
“The proposals are almost identical and submitted as per directives of the government,” a top official of the Power Division told UNB.
Earlier on Tuesday the state-owned Bangladesh Power Development Board (BPDB) had submitted its proposal to the energy regulator seeking Tk 1.47 hike per kilowatt hour (each unit) at the retail level.
BPDB wanted to raise the retail tariff by 19.44 percent, to Tk 9.03 per unit from the existing Tk 7.56 per unit.
Chiefs of the two remaining distribution entities — Bangladesh Rural Electrification Board (BREB) and Northern Electricity Supply Company PLS (NESCO) — will submit their respective proposals to BERC on Sunday.
“We’ve finalised our proposal on retail power tariff adjustment. We’ll submit it on Sunday”, said BREB chairman Mohammad Selim Uddin.
NESCO managing director Zakiul Islam informed of similar preparation and plan of his company.
Read more: BPDB submits retail power tariff adjustment proposal seeking a 19.44 percent hike
The retail power tariff proposal was placed by BPDB within the next day after the bulk power tariff was raised.
On Monday, BERC raised the bulk power tariff by 19.92 percent – to Tk 6.20 per kilowatt hour (each unit) from the previous Tk 5.17 – with effect from December 2022, disposing a review appeal of the BPDB.
As per the BERC Act 2003, after receiving any proposal from any power distribution entity on tariff adjustment, BERC will hold a public hearing to listen to the opinions of different stakeholders and then it will announce its decision within 90 days from the conclusion of the hearing procedures.
After the bulk tariff enhancement, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that right now, the bulk power tariff hike will have no impact on the masses.
He, however, said the government wants to ensure uninterrupted power supply to consumers. “That’s why power tariff adjustment was needed,” he added that the power distribution entities are preparing their proposals to submit to BERC – seeking a hike in the electricity tariff at retail level.
“BERC will examine whether it will have any impact on retail consumers in future,” he told reporters.
Read more: Bulk power tariff hike won’t affect retail consumers right now: Nasrul Hamid
Consumers Association of Bangladesh (CAB) ASM Shamsul Amal said that the rights group will present its opinion when the proposals come for public hearing.
The retail tariff was raised on a weighted average by 5.3 percent to Tk 7.13 from Tk 6.77 per unit (each kilowatt-hour) with effect from March 1, 2020.
Bulk power tariff raised by 19.92%
Bulk power tariff has been raised by about 19.92 percent – to Tk 6.20 per kilowatt hour (each unit) from the previous Tk 5.17 – with effect from December 2022.
Chairman of Bangladesh Energy Regulatory Commission (BERC) Md Abdul Jalil announced the decision today to raise the power tariff, disposing of the review appeal of the state-owned Bangladesh Power Development Board (BPDB) to raise bulk power tariff.
However, the new power tariff will not be effective for retail consumers. It will be effective only for power distribution companies and some other bulk consumers.
BPDB filed the review appeal to BERC on November 14 – within 30 working days after its proposal was rejected by the regulator on October 13.
Before submitting the proposal, BPDB received a nod from the government’s highest policy level, the media release from BERC said. State Minister for Power, Energy and Mineral Resources Nasrul Hamid also approved the review appeal on bulk power tariff.
BERC Chairman Abdul Jalil said the new bulk tariff was set considering Tk 17,000 crore subsidy to be received from the government.
Read more: BPDB submits review appeal to raise bulk power tariff
Consumers Association of Bangladesh (CAB) Vice President ASM Shamsul Alam termed BERC’s decision, without any public hearing, as an “arbitrary act” and “violation of the BERC Act”.
“When people are already fed up with load shedding and sharp price hike of essentials, this decision from BERC will be a big blow for the public,” he told UNB.
Power Division officials said that the government has been under tremendous pressure to raise power tariff – in order to reduce the subsidy in power sector – as per condition of the International Monetary Fund (IMF), which promised to provide $4.5 billion in loan to Bangladesh as part of crisis management support.
Earlier when delivering a decision by rejecting the BPDB proposal on October 13, BERC chairman Abdul Jalil said that some of the private companies, which purchase electricity 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 considering socio-economic condition,” he had told reporters.
But this time, he said, BPDB submitted all required data. “As there is no price effect on the retail consumers, we didn’t have to analyse the socio-economic concision”, he said.
The last public hearing on a BPDB proposal to raise bulk power tariff was held on May 18.
Read more: BPDB to incur over Tk 30,000 cr loss if bulk power tariff not raised
BPDB placed a proposal to raise bulk power tariff by 65.57 percent at the public hearing while a technical evaluation committee of BERC recommended a 57.83 percent hike.
BPDB in its latest review appeal proposal mentioned that its actual generation cost of supply is Tk 8.96 per unit, instead of previous calculated tariff of Tk 8.16 per unit.
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.
Read more: BERC’s TEC commends a 57.83pc hike in bulk power tariff rejecting BPDB’s 65.57pc
Meanwhile, distribution companies are now preparing to submit their respective proposals to raise retail power tariff too, official sources said.
Nasrul Hamid also said that the distribution entities are preparing their proposals to submit to the energy regulator, seeking a substantial hike in the electricity tariff at retail level.
“Power distribution companies are now working to prepare their proposals…They are calculating the possible impact of any hike in the bulk power tariff,” he told UNB.
Now govt moves to raise retail power tariff
After submission of a review appeal by state-owned BPDB to raise bulk power tariff, now distribution companies are likely to submit their respective proposals to raise retail power tariff, official sources said.
According to a top level source at the Power Division, the Bangladesh Power Development Board (BPDB) will submit its proposal to the Bangladesh Energy Regulatory Commission (BERC) to enhance retail power tariff on Sunday next while other distribution entities will submit their respective proposals within the next week.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid also said that the distribution entities are preparing their proposals to submit to the energy regulator seeking a substantial hike in the electricity tariff at retail level.
“Power distribution companies are now working to prepare their proposals…They are calculating the possible impact on any hike in the bulk tariff,” he told UNB.
The BPDB sources said the government is expecting that the BERC will announce its decision on the review appeal on bulk tariff on any day in the next week.
“We hope, BERC will raise the bulk tariff by at least 20 percent,” said a top official of the BPDB, adding that, considering a possible 20 percent hike, the BPDB is seeking at least 12 percent hike in retail tariff of electricity.
He also said all the distribution companies may submit an identical proposal in consultation with the Power Division where they may seek between 12-16 percent hike in the retail tariff.
Read more: Decision on bulk power tariff ‘adjustment’ Thursday
The retail power tariff was last raised in March, 2020 by BERC after holding a public hearing.
Through an announcement, the BERC had raised the power tariff on a weighted average by 5.3 percent at retail and 8.4 percent at wholesale levels with effect from March 1, 2020.
As per that decision, the retail power tariff was increased from Tk 6.77 to Tk 7.13 per unit (each kilowatt-hour) and Tk 4.77 to Tk 5.17 at bulk level.
There are six power distribution entities in the country which sells electricity to retail consumers across the country.
They are BPDB, Bangladesh Rural Electrification Board (BREB), Dhaka Power Distribution Company Limited (DPDC), Dhaka Electric Supply Company Limited (Desco), Northern Electricity Supply Company PLS (Nesco), West Zone Power Distribution Company Limited (WZPDCL).
On the other hand, BPDB is also a single buyer of bulk electricity in the power sector, which itself generates power and also buys electricity in bulk from different power generation companies and sells it to the distribution companies.
The distribution entities sell electricity in retail to the consumers.
The Power Division is under tremendous pressure from the Finance Ministry to raise power tariff in bulk and retail to cover its huge financial losses.
The recent commitment of the International Monetary Fund (IMF) to provide a $4.5 billion loan has increased the pressure as the donor agency has tagged a condition to decrease subsidy in the power sector and raise power tariff to cover the loss, said a Power Division official.
Read more: BPDB submits review appeal to raise bulk power tariff
Against the backdrop, he said, both the BPDB and distribution entities have initiated a move to place their respective proposals to the BERC to raise power tariff in bulk and retail.
The BPDB on November 14 submitted its review appeal to the BERC to raise the bulk power tariff which remains pending for decision.
The original proposal was rejected by BERC on October 13 as there was "data ambiguity".
In the original proposal placed in May this year, the BPDB sought a rise in bulk power tariffs by 65.57 percent while a technical evaluation committee of BERC recommended a 57.83 percent hike.
The BPDB showed that it 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.
Sources said the latest calculation reveals that the BPDB’s revenue deficit has further increased to about Tk 48,000 crore following the hike in petroleum fuel prices and also the price of dollars.
Read more: Electricity price to remain unchanged for now
“Previously we had calculated the dollar exchange rate at Tk 85. But now we have to calculate at Tk 107,, said a top official BPDB on condition of anonymity.
IMF team attends BERC presentation on setting power, gas tariffs
The visiting team of the International Monetary Fund (IMF) has been keen to know how the Bangladesh Energy Regulatory Commission (BERC) sets power and gas tariffs.
A four-member IMF delegation, led by Rahul Anand, head of its Asia and Pacific Division, has been in Bangladesh since October 26 to discuss the government's request for a $4.5 billion loan and held a series of meetings with its different departments.
BERC Chairman Abdul Jalil welcomed the delegation in Kawran Bazar on Sunday. He briefed them about the operations of the energy regulator.
Read more: IMF’s conditions for loan: TIB watchful about “discriminatory implications”
Jalil said the IMF team mainly wanted to know how the regulatory body fixes the tariffs on gas and electricity. "We've informed the IMF team about the legal process that BERC follows as per the BERC Act while setting the tariffs of gas and electricity."
BERC Deputy Director (Tariff) Quamruzzaman made a presentation on the way they set power and gas tariffs during the meeting.
Sources at BERC said the IMF team mainly focused on the government's subsidies to the gas and power sector.
They asked different questions on the process of the government's subsidies now being provided to the power and gas sector.
They wanted to learn whether the subsidy is fixed by the government or BERC, said a source, adding that BERC made it clear that they have no scope to fix the subsidy. "Only the government sets the subsidy and allocates funds based on the requirements of the power and energy ministry.'"
The IMF team was informed that the price of petroleum fuel is set by the government. It is supposed to be set by the energy regulator as per the BERC Act.
Recently BERC turned down an appeal of the Bangladesh Power Development Board (BPDB) to raise the bulk power tariff to cover the financial losses of the government in providing electricity to the consumers.
Read more: Bangladesh doesn’t need to borrow from IMF if dignity is sacrificed: FBCCI President
BPDB said the government will have to spend Tk71,878 crore in the fiscal year 2021-22 on power production, of which Tk44,434 crore will be spent on buying electricity from the private sector.
Of this amount, Tk37,963 crore will be required to buy power from the independent power producers (IPPs) and small IPP plants in the private sector which produce 38 percent (8,807 MW) of the total generation capacity.
BERC held a public hearing on the issue in May this year and finally rejected BPDB's request on October 13.
Electricity price to remain unchanged for now
Bangladesh Energy Regulatory Commission (BERC) has rejected state-owned Bangladesh Power Development Board’s (BPDB) proposal to raise bulk power tariff.
“The current charges will remain unchanged for now,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid told UNB today.
“BPDB’s proposal has not been accepted,” BERC chairman Abdul Jalil said while announcing the decision of the commission today.
He, however, said if any party feels aggrieved, they can apply for re-consideration of the decision within 30 days.
Read: Decision on bulk power tariff ‘adjustment’ Thursday
He noted 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 during the virtual meeting.
The current socio-economic and power supply situation were taken into consideration when making the BERC decision, he noted.
The last BERC decision, in February 2020, shall prevail, said the BERC chairman adding that no further tariff will be introduced and the previous tariff will be continued.
Read National power grid failure: Blackout across Bangladesh
He also said that BPDB has received a subsidy of Tk 17,000 crore from the government. So, it will be no problem for BPDB to adjust its cost.
The last public hearing on a proposal of the state-owned Bangladesh Power Development Board to raise bulk power tariff was held on May 18.
BERC extended the time for stakeholders to submit relevant documents for ending the hearing procedures.
From that additional time, BERC counted 90 days and set October 13 to announce its decision.
Read Focus more on generating electricity from renewable sources
The energy regulator's decision to reject the proposal to raise bulk power tariff came at a time when the country has been experiencing a nagging power crisis and consumers are suffering 5-6 hours of load shedding daily.
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.
Against this backdrop, BPDB placed a proposal to raise bulk power tariffs by 65.57 percent at the public hearing while a technical evaluation committee (TEC) of BERC recommended a 57.83 percent hike.
Read Bangladesh produces 14,001MW of electricity: A new record
The 5-member commission makes the final decision following a public hearing after listening to arguments and counter arguments from the stakeholders on any proposal.
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 practice in buying electricity from inefficient private power plants at higher rates.
Placing the proposal, BPDB officials had said the organisation 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.
Read Despite lower electricity demand on weekend, Dhaka ...
"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 suspended operation of its diesel-fired power plants and also import of liquefied natural gas (LNG) following escalation of fuel prices in the international market as fallout of the Russia-Ukraine war.
As a result, though the country's installed power generation capacity is about 25,50 MW, it now generates about 12,000 MW against a demand for around 14,000 MW and resorts to a load shedding of about 2,000 MW.
Read Bulk power tariff hike in Bangladesh could be announced within Oct 14, 2022
LPG cylinders costlier from today
Be ready to shell out more for a gas cylinder in Bangladesh.
The Bangladesh Energy Regulatory Commission (BERC) on Wednesday hiked the price of liquefied petroleum gas (LPG) by Tk 1.33 per kg.
This effectively means that a 12kg container will now cost a household Tk 1,235 instead of the earlier Tk 1,219, up by Tk 16.
"Five to 45kg LPG containers will be rationally sold as per the new rates," said BERC acting chairman ABM Faruque.
As per announcement, the price of gas for motor vehicles has been increased to 57.55 per litre instead of the earlier Tk 56.85 per litre.
Read: Rice price hike adds to plight of low-income people in Bagerhat
Faruque said though the LPG price has substantially come down in the global market, consumers are not getting full advantage of the downward trend due to the high dollar price in the local market.
Operators have to import LPG from the international market.
He informed that the dollar exchange rate was considered Tk 104.02 on the basis of the weighted average rate of 16 importing companies' LC settlements.
Referring to the Commission’s discussion with Bangladesh Bank, he said the central bank’s dollar exchange rate is not applicable to private importers.
“BB informed the BERC that only two government entities enjoy the benefits of the central bank’s set dollar rate”, he added.
Read: Why fuel price hike through gazette notification should not be declared illegal: HC
As a result, local banks are not abiding by the dollar rate fixed by Bangladesh Bank. Rather, they set the dollar price depending on the demand and supply and their relation with clients.
Banks are calculating dollar rates much higher than Bangladesh Bank’s rate.
The price of LPG, marketed by state-owned LP Gas Company, will remain as usual as it is locally produced with a market share of less than 5.0 percent.
The LPG price went up to the highest Tk 1,439 (a 12kg cylinder) in the local market, following the start of the Russia-Ukraine war in February this year.
The LPG price was the lowest at Tk 1,225 for a 12 kg cylinder in January this year and it witnessed continuous hikes in February, March and April.
BERC orders Petrobangla to return Tk 12,227 cr to ESF and GDF funds
Bangladesh Energy Regulatory Commission has directed state-owned Petrobangla to return Tk 12,227.44 crore to its two original funds—the energy security fund (ESF) and the Gas Development Fund (GDF).
The energy regulator’s latest directive which came as the BERC Order No-2022/7, in detail, was released on June 27 and uploaded on its website on the same day.
However, BERC gave its brief order on June 4 raising gas prices by average 23 percent at retail consumer level.
Also read: Petrobangla to scrap compensation clause in future gas pacts?
As per the BERC Verdict, the Petrobangla has to now return Tk 9227.44 crore to ESF Fund and Tk 3000 crore with interest to the GDF fund which the organization had taken away and used for different purposes.
The verdict did not dictate a specific date for the Petrobangla as to when it has to return the funds.
The order came as a follow-up of the public hearing on gas prices held on March 21 in the city’s BIAM Auditorium where different consumer right groups, including Consumers Association of Bangladesh (CAB) termed the ESF and GDF fund as consumers’ money which they paid in addition to their bills for gas field development and security purposes.
But the Petrobangla used some of the funds for different other purposes while deposited to the government exchequer as per a Finance Ministry order.
The CAB and other right groups pleaded with the BERC to return the amount to the original funds and ensure its use only for gas field development and the gas sector’s security purpose through a transparent way which will be monitored by consumers representatives.
CAB Vice President M Shamsul Alam welcomed the verdict and said that now an obligation has been created on the part of the Petrobangla to return the fund.
Also read: Proposed gas price hike: Petrobangla under fire at public hearing
He said if Petrobangla does not abide by the BERC order, the regulator can punish or fine the responsible officials of Petrobangla for violating the verdict
He said if the Petrobangla fails to fulfill its legal obligation, the CAB will move the court to force the organization to implement the order.
12kg LPG price lowered by Tk 93
The price of liquefied petroleum gas (LPG) has decreased further by Tk 7.23 per kg.
From now, the consumers will get a 12kg bottle of this cooking gas at a lower price by Tk 93 as the its price has been set at Tk 1242 instead of the last month’s (May, 2022) price of Tk 1335.
The Bangladesh Energy Regulatory Commission (BERC) announced the price at a virtual briefing on Thursday.
The new price will come into effect at 6pm today( Thursday).
Also read: Per kg LPG price declines by Tk 8.68, 12 kg container to be sold at Tk 1335
The other quantity containers of LPG from 5 kg to 45 kg will rationally be sold at per the new rates, said BERC chairman Abdul Jalil.
As per announcement, the price of auto gas for motor vehicles has been lowered to Tk 57.91 per litre from the earlier price of Tk Tk 62.21.
However, the price of LPG, marketed by the state-owned LP Gas Company, will have no effect as it is locally produced with a market share of less than 5 percent.
The LPG price had gone up to the highest Tk 1439 (12 kg) in the local market following the start of the Russia-Ukraine war in February this year.
The LPG price was lowest at Tk 1225 for 12 kg in January this year and it witnessed the continuous hike in price in February, March and April.
Abdul Jalil said that globally the price of Saudi CP (contract price) has declined which gives the benefit to the local consumers as Bangladeshi private LPG operators mainly import the gas from the Middle East market based on Saudi CP.
Also read: LPG gets costlier further by Tk 48 per 12-kg container
The BERC, for the first time, fixed the retail-level LPG prices on April 12 after holding a public hearing to comply with a High Court order.