The Bangladesh Energy Regulatory Commission (amendment) Bill was placed in Parliament on Sunday, aiming to create scope for the government fix the prices of power and energy without public hearing. State Minister for Power, Energy and Mineral Resources Nasrul Hamid placed the Bill in the House and it was sent to the respective scrutiny committee for further examination. The committee was asked to submit its report within five days. Earlier, Law minister Anisul Huq placed the “Bangladesh Energy Regulatory Commission (amendment) Ordinance, 2022” in Parliament on Jan 5. President Abdul Hamid promulgated the ordinance on December 1 last amending the Bangladesh Energy Regulatory Commission (BERC) Act-2003. Also Read: DPP being reframed to build Turag and Keraniganj townships: Sharif Ahmed   The law ministry issued a gazette on December 1 on the amendment that allows government to adjust the prices of gas and electricity besides fuel oil. Previously, the Ministry of Power, Energy and Mineral Resources used to adjust the prices of fuel including diesel, octane, kerosene and petrol without any hearing but  the prices of gas and electricity were adjusted by the BERC through hearings. With the amendment of the Bangladesh Energy Regulatory Commission (BERC) Act-2003, the power ministry will not require to hold a hearing to decide new prices for gas and electricity. The BERC is an autonomous body which was established based on the Bangladesh Energy Regulatory Act 2003, aiming at improving power and energy infrastructure in Bangladesh. The law was amended thrice in the past. 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.  

Public hearing on retail power tariff hike proposals will begin at 10 am on Sunday (January 08, 2023) in the city's BIAM Auditorium. Bangladesh Energy Regulatory Commission (BERC) will hold the hearing on the proposals submitted by 6 state-owned power distribution entities to raise about 20 percent power tariff at the retail level. It was said by the commission in a notice that the hearing will continue until 5 pm and if all stakeholders could not complete their submissions, then the hearing will continue for the second day on Monday (January 9) too. Read: BPDB submits retail power tariff adjustment proposal seeking a 19.44 percent hike All the six state-owned power distribution bodies which submitted their respective proposals on raising retail power tariff in subsequent of the bulk power tariff hike are—Bangladesh Power Development Board (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). They have placed almost an identical proposal to raise retail power tariff by about 20 percent. They moved to submit their proposals following the BERC’s decision to hike the bulk power tariff by 19.92 percent with effect from December 1. Read: Power tariff hike to deepen public suffering further: BNP As per the latest statistics, the financial loss of state-owned Bangladesh Power Development Board (BPDB), the principal organisation in power sector and also the single buyer of electricity from private sector power plants, is likely to increase by Tk 18,094 crore in one year. According to BPDB’s own latest estimates, the financial loss will cross Tk 48,000 crore in the 2022-23 fiscal from Tk 29,915 crore in the fiscal year 2021-22, an increase of almost 67%. Sources said the BPDB’s revenue deficit has further increased due to its purchase of electricity at higher price and sale at lower price, the hike in petroleum fuel prices and also the price escalation of US dollars. Read More: BERC now to consult with govt before any move on retail power tariff hike proposals Officials said the recent 19.92 percent hike in the bulk tariff may help the BPDB to reduce its loss by only Tk 5,000 crore while a huge revenue deficit will remain a big burden. On the other hand, the bulk power tariff hike puts pressure on power distribution companies to submit their retail tariff hike proposal to the BERC to cover their own revenue gaps. The retail power tariff was last raised in March, 2020 by BERC after holding a public hearing. Read More: Bulk power tariff hike won’t affect retail consumers right now: Nasrul Hamid Through an announcement, the BERC had raised the power tariff on a weighted average by 5.3 percent at retail level 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). Officials said 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. Read More: CPD raises question about power tariff enhancement proposal The recent commitment of the International Monetary Fund (IMF) to provide a $4.5 billion loan to Bangladesh 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 losses, said a Power Division official.

Bangladesh Energy Regulatory Commission (BERC) will now consult with the government before any move towards holding a public hearing on retail power tariff hike proposals. "We think we should first consult with the government before starting any process for public hearing on the submitted proposals”, Mohammad Bazlur Rahman, Member (Power) of the BERC, told UNB. Such remarks from the BERC Member came against the backdrop of the government’s latest move to amend the BERC Act 2003 to create scope for the government to take arbitrary decisions on raising retail and bulk power and energy prices. Read more: Raising retail power tariff: 3 more distribution companies submit proposals “After the proposed amendment, the BERC should not move into any conflicting situation”, Bazlur Rahman said. 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. The approval came at the Cabinet meeting with Prime Minister Sheikh Hasina in the chair at the PMO, said Cabinet Secretary Khandker Anwarul Islam while briefing the media at the Secretariat. He said the BERC can wait for up to 90 days to review and take a decision on fixing tariff rates and this is a long time. The amendment is being done so that the government can set the fuel price on an urgent basis in a situation like what prevails now. The possibility of importing fuel and energy under private arrangement was discussed at the meeting and the relevant authorities were given direction in this regard, he said. However, BERC Chairman Abdul Jalil, a former secretary of the government, was reluctant to make any comment before going through the gazette notification on the proposed amendment. "Let me see the gazette notification first… Then the commission will decide on any issue relating to public hearing or tariff fixation”, he told UNB. Meanwhile, all the six state-owned power distribution bodies submitted their respective proposals on raising retail power tariff in subsequent of the bulk power tariff hike. Read more: BPDB submits retail power tariff adjustment proposal seeking a 19.44 percent hike Sources said the six entities—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)—have placed almost an identical proposal to raise retail power tariff aby about 20 percent. They moved to submit their proposals following the BERC’s decision to hike the bulk power tariff by 19.92 percent with effect from December 1. As per the latest statistics, the financial loss of the state-owned Bangladesh Power Development Board (BPDB), the principal organisation in power sector and also the single buyer of electricity from private sector power plants, is likely to increase by Tk 18,094 crore in one year. According to BPDB’s own latest estimates, the financial loss will cross Tk 48,000 crore in the 2022-23 fiscal from Tk 29,915 crore in the fiscal year 2021-22, an increase of almost 67%. Sources said the BPDB’s revenue deficit has further increased due to its purchase of electricity at higher price and sale at lower price, the hike in petroleum fuel prices and also the price escalation of US dollars. Officials said the recent 19.92 percent hike in the bulk tariff may help the BPDB to reduce its loss by only Tk 5,000 crore while a huge revenue deficit will remain a big burden. Read more: Bulk power tariff hike won’t affect retail consumers right now: Nasrul Hamid On the other hand, the bulk power tariff hike puts pressure on power distribution companies to submit their retail tariff hike proposal to the BERC to cover their own revenue gaps. 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 level 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). Officials said 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.

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.

Bangladesh Energy Regulatory Commission (BERC) will hold public hearing on a proposal for raising electricity tariff at bulk level on May 18. The state-run Bangladesh Power Development Board (BPDB) moved the proposal last month urging the energy regulator to set the bulk power tariff at Tk8.58 instead of existing 5.17 per kilowatt hour (each unit). The BERC in public notice informed that the public hearing will be held at Biam Auditorium in the city from 10.30 am to 5 pm on May 18. Also read: Proposed gas price hike: Petrobangla under fire at public hearing It also requested the interested parties and individuals who want to participate in the hearing to send the opinions in written by April 28 and enlist their names for the hearing. 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 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 electriocity from BPDB in bulk and then sell it to the public at retail rates. So, the public hearing on retail tariff will come consequently, said an industry insider. Also read: Public hearing on LPG pricing postponed again 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. BERC member Syed Mokbul-e-Elahi Chowdhury said the it wants to first settle the bulk tariff proposal. “This time we want to keep the hearing only on the bulk tariff proposal... the issue of retail tariff will be settled later by the commission”, he told UNB.

State-run Petrobangla’s proposal to hike retail gas price faced stiff opposition from groups representing consumers, citizens, businesses and professionals at a public hearing that began at the city’s BIAM auditorium on Monday. Bangladesh Energy Regulatory Commission (BERC) is holding the hearing responding to the proposals of eight gas sector entities including Petrobangla to raise gas price by 117 per cent. The hearing will continue till Wednesday. The consumer rights groups said that any rise in gas price will be totally illogical and unfair at this moment when the people are struggling price hike of essentials resulting from Covid-19 pandemic shock. BERC chairman Abdul Jalil, who presided over the sessions, expressed his resentment on the proposals of different gas companies saying that their data on financial and technical issues are mismatching with each other’s. He said there should be a central data system from which accurate information could be found before taking decision on any issue in the gas sector. He also said the data presented by the Petrobangla could not satisfy the people. On the first day of the hearing, officials of Petrobangla and Gas Transmission Company Limited separately placed their proposals in two separate sessions in the morning and after lunch. Also read: Gas price hike proposal: 3-day public hearing begins Monday The Petrobangla officials claimed that the annual expenditure of the organization will increase to Tk 65,225.75 crore due to import of LNG (liquefied natural gas) and other cost escalations. As a result, on an average gas price needs to be increased to Tk 20 from the existing Tk 12.60 per cubic meter. A technical team of the BERC disagreed with the claim of Petrobangla and placed its report saying that state-run agency still has a unutilized fund of about Tk 2500 crore as surplus after meeting its expenses. Opposing the claim of the Petrobangla, Prof Shumsul Alam, advisor of the Consumers Association of Bangladesh (CAB) challenged the authenticity of the data and statistics provided by its officials. He said he had sought different data from Petrobangla and other seven companies, but they did not provide it, which is a violation of the BERC Act. Also read: Further hike in gas price will come as a big blow to masses: speakers He raised a number of questions on the merit of Petrobangla's proposal and demanded for a cut in its unfair expenses and reducing the system loss instead of increasing the price of gas to adjust its cost. He also urged the BERC to form a high level commission composed from representatives of the consumer groups to ensure good governance in the gas sector. President of Bangladesh Sadharan Nagorik Samaj Mohiuddin termed the proposal of the Petrobangla and GTCL baseless and unfair and misleading. “If any rise in gas price comes on the basis of the Petrobangla proposal, it will be disastrous”, he said. Eminent energy expert Dr Badrul Imam said the current crisis in the gas sector is deeply rooted in the government’s failure to conduct exploration. “In last 20 years, there has been no major exploration works conducted in the gas sector”, he observed. He said it will be totally illogical to raise gas prices for import of only 3 per cent gas from the international spot market.

Bangladesh Energy Regulatory Commission (BERC) will hold public hearing on the proposed gas tariff hike on March 21-24. The commission has taken the decision to hold the public hearing if everything remains as usual, said Md Abdul Jalil, chairman of the BERC on Monday. “We’ve already sent the notice in this regard to the newspapers to publish it as advertisement,” he told UNB.   State-owned 6 gas distribution companies and one transmission  company submitted their final proposals to the energy regulator on January 25 seeking a 117 percent hike in gas price at retail level. Besides, their principal gas supplier Petrobangla also placed its proposal to raise the price of the natural gas at bulk level. Also read: Decision on gas price hike proposals after detailed analysis: BERC chairman As per the gas distributors’ proposals, the monthly gas price for a double burner will increase to Tk 2100 from existing Tk 975, while price for single burner will rise to Tk 2000 from current Tk 925. Petrobangla is the bulk supplier to the six downstream distribution companies.  They are Titas Gas Transmission and Distribution Company Ltd (Titas Gas), Bakhrabad Gas Distribution Company Limited (BGDCL), Jalalabad Gas Transmission and Distribution System Ltd (JGTDSL), Paschimanchal Gas company Limited(PGCL), Karnaphuli Gas Distribution Company Limited (KGDCL) and Sundarban Gas Company Limited (SGCL) while the only transmission company is Gas Transmission Company Limited (GTCL). Following the submission of the proposals by the companies, a 5-member watchdog body scrutinized and set the schedule for the public hearing. As per the BERC Act, the commission will invite interested representatives from stakeholders in the gas sector to take part in the public hearing. After the conclusion of the hearing, the watchdog body will announce its decision within 90 days. Official sources said Petrobangla and its 7 subsidiary bodies submitted the proposals to raise gas price at the bulk and retail levels following the directive of the Energy and Mineral Resources Division of the Ministry of Power, Energy and Mineral Resources. For the last several months, the Energy Division has been under pressure from the Finance Ministry to collect more revenues by raising gas prices to offset subsidies in the energy sector. A member of the BERC said Petrobangla currently imports only 5 per cent of its daily consumption from a highly volatile international spot market where it has to buy gas at higher price. It imports its 20 per cent gas from two international companies under long-term contracts where price is static. “If the local production is raised by 5 per cent, then the country will not need to import the 5 per cent gas from volatile markets at a higher price and finally it would not have to raise the gas price at retail level,” he added. Also read: Govt working to keep gas price within tolerable limit: Nasrul Normally, the Petrobangla supplies 2,700-3,000, million cubic feet (mmcfd) gas per day of which 2,300 mmcfd is produced locally while 600 mmcfd is imported as liquefied natural gas LNG. Of this imported 600 mmcfd, 150 mmcfd is imported from spot market at a variable price between $10 and $30 per unit. Meanwhile, side by side the state-owned power distribution companies also submitted proposals  to the BERC to raise the power tariff as well. About the proposals, the BERC chairman informed that the commission has received proposals from state-owned Bangladesh Power Development Board (BPDB) and other power distribution companies to raise power tariff as well. “But we’re yet to complete the scrutinizing job on the proposals”, he said. So, no decision has been made as yet on holding of any public hearing on power tariff hike proposals, he said. 

Bangladesh Energy Regulatory Commission (BERC) has postponed its proposed public hearing on liquified petroleum gas (LPG) price fixing scheduled for July 7-8. According to a BERC public notice, the hearing was suspended in compliance with the government’s directives against the backdrop of the countrywide strict lockdown that began on July 1. The commission will announce a fresh date for the public hearing later, a BERC notice said. The energy regulator had announced the scheduled public hearing responding to the appeal of the LPG operators, who oppose the present pricing formula for LPG.  Also read: Private operators demand fixing LPG price on “practical assessment” basis The BERC held its last public hearing on LPG price fixing in January this year, and first fixed the price on April 12 after that, complying with a court order.  The LPG operators in private sector have been alleging that many of their cost components were not considered by the energy regulator while announcing the price. As a result, their businesses have seen a huge financial loss, said Azam Chowdhury, president of LPG Operators Association of Bangladesh (LOAB), a representative body of the operators. The operators, which include LPG cylinder manufacturers, bottling plant owners, importers, and traders, demanded addition of Tk 224 for a 12-kg LPG cylinder as costs of the operators while fixing the new retail price of LPG by the BERC. Also read: Private companies’ 12 kg LPG price reduced to Tk 842 from June 1 The LPG businesses, having a size worth around Tk 300 billion, are at stake as the consequence, they said. A 12kg LPG, being provided by private operators, is Tk 891 for July trading, as per the BERC’s latest order. The price was Tk 842 per for June trading, Tk 906 for May trading and Tk 975 for April trading, as fixed by the BERC. However, most of the consumers in Dhaka were buying a 12kg LPG cylinder at a price ranging between Tk 1,000 and Tk 1,100 over the past three months, traders said.

Bangladesh Energy Regulatory Commission (BERC) will hold a public hearing on Thursday to re-fix the price of liquified petroleum gas (LPG) at the consumer level.