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.

The price of liquefied petroleum gas (LPG) has decreased by Tk 2.92 per kg. From now, 12 kg container will be sold at Tk 1219 instead of Tk 1254, down by Tk 35 from 6 pm on Tuesday. The Bangladesh Energy Regulatory Commission (BERC) announced the price at a virtual briefing on Tuesday. The other quantity of LPG containers 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 decreased to Tk 56.85 per litre instead earlier Tk 58.46 per litre. Abdul Jalil said though the price of LPG has come down on the international market, consumers are not getting full advantage of the downward trend due high dollar price in local market. The operators have to import LPG from international market. He also said that the BERC observed the 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. Banks have calculated dollar rate between Tk 98 and 105 while Bangladesh Bank’s rate was much lower. Read: LPG price hiked by Tk 1 per kg “We have written to the central bank about the problem. Bangladesh Bank has yet not replied to our letter,” he said.    Jalil said the price of LPG, marketed by 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 went 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 continuous hike in price in February, March and April. Abdul Jalil said that globally the price of Saudi CP (contract price) has declined. Bangladeshi private LPG operators mainly import the gas from the Middle East market based on Saudi CP. 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.

The price of liquefied petroleum gas (LPG) has increased by Tk 1 per kg. From now, 12 kg container will be sold at Tk 1254 instead of Tk 1242 (May, 2022) from 6 pm Sunday. The Bangladesh Energy Regulatory Commission (BERC) announced the price at a virtual briefing on Sunday. Read: 12kg LPG price lowered by Tk 93 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 increased l to Tk 58.46 per litre instead earlier Tk 57.91 per litre. Abdul Jalil said though the price of LPG has come down on the international market, the price has increased locally due to higher price of US Dollar.   Last month US Dollar price was Tk 85 while this month Dollar price was calculated at Tk 93.50. Jalil said 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 continuous hike in price in February, March and April. Read:Per kg LPG price declines by Tk 8.68, 12 kg container to be sold at Tk 1335 Abdul Jalil said that globally the price of Saudi CP (contract price) has declined. Bangladeshi private LPG operators mainly import the gas from the Middle East market based on Saudi CP. 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.

The average gas price has been raised by 22.78 percent for the retail consumers in the country with effect back from June 1. Acting chairman of the Bangladesh Energy Regulatory Commission (BERC) Mohammad Abu Faruque announced the hike through a virtual briefing on Sunday. As per the announcement, the average gas price has been raised to Tk 11.91 per cubic metre from the existing Tk 9.70 per cubic metre (CM). Except the users of CNG (compressed natural gas) all other consumers will have to pay more for the natural gas. The price for small industries has, however. been decreased a little. Also read: No hike in gas price now: BERC As per the new rate, the household consumers having single burner will have to pay Tk Tk 990 (7.03 percent rise) instead of exiting Tk 925 a month while the double burner users will have to pay Tk 1080 (10.77 percent rise) instead of existing Tk 975 for double burner. The highest increase was made in the household consumers as they have to pay Tk 18 per Cubic metre (42.86 percent rise) instead of existing Tk 12.60 per cubic metre (CM). According to the increased price, CNG consumers will have to pay at the existing rate of Tk 43 per CM while captive plant operators will have to pay Tk 16 per CM (15.52 percent rise) instead of Tk 13.85. Commercial consumers like restaurants, hospitals, student hostels, hotels will have to pay Tk 28.64 (15.83 percent rise) instead of Tk 23 per CM. The large industries industry owners will have to pay Tk 11.98 (11.96 percent rise) instead of Tk 10.70 per CM while medium industry Tk 11.78 per CM (10.09 percent rise) and small and cottage industry Tk 10.78 (36.74 percent decrease) and the tea estates at Tk 11.93 per CM (11.50 percent rise). Public and private power plants will have to pay Tk 5.02 per CM instead of Tk 4.45 per CM (12.81 percent rise) while fertiliser factories Tk 16 (59.55 percent rise) from existing Tk 4.45 per CM. Energy sector experts believe that the increase in gas price for power plants means it will have a spillover effect and the power plant operators will soon raise demand for increase in power tariff. The BERC acting chairman said this new price was calculated considering the import of 645 million cubic feet (MMCFD) of LNG for the new fiscal year of 2021-22. He said the gas price was last increased in June 2019. The new price hike came in response to the demands of different gas utility companies. The BERC held a series of public hearings on March 21-24 this year.

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.

Consumers will have to buy Liquefied Petroliam Gas (LPG) at a higher price as the Bangladesh Energy Regulatory Commission (BERC) has re-fixed the price of 12 KG LPG container at Tk 1439 from existing Tk 1391 with effect from 6 pm on Sunday. It means, a consumer has to pay additional Tk 48 to buy a 12kg LPG container while Tk 4 per kg for other quantities of the containers. Read: Revoke decision to hike in LPG prices: BNP Most consumers use the 12kg container while 18kg, 25kg containers are also available in the market. The new price will be effective from 6 pm on Sunday (April 3), said BERC chairman Abdul Jalil while announcing the price. According to the new price, the auto gas price has been raised to Tk 67.02 per liter from Tk 63.07. BERC chairman Abdul Jalil attributed the global price hike of Saudi CP(contract price) due to Russia-Ukraine war and also the increase in Taka-Dollar rate. Now each dollar’s exchange rate is Tk85.25 which was earlier Tk85.07, he added. Similarly, the importers have to pay higher amounts against a 7 percent VAT while overall cost is higher than earlier, said the BERC chief. He said the Saudi contract price (CP) has risen globally to $953-- from $911.25 per metric tonne. “It is hard to predict whether the price will go up or down in the current global situation”, he said. Read: LPG gets costlier by Tk 62 per 12-kg container According to industry insiders, the Saudi CP is normally announced at the end of every month to make it effective for the next month, and it takes at least 7-10 days for a shipment of the fuel to arrive in the country. Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally. 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.

The price of private operators' liquefied petroleum gas (LPG) has been increased by Tk 62 to 1,240 from Tk 1178 per 12-kg container with effect from 6 pm today (Thursday, Feb 3) at the retail level, including the value added tax (VAT). Bangladesh Energy Regulatory Commission (BERC) announced the new price at a press briefing on Thursday. Read: LPG gets cheaper by Tk 50 per 12-kg container As per the announcement, the prices for other quantities of the LPG will also go up in line with the new price at the same ratio. The price of autogas for motor vehicles has also gone up to Tk 57.51 from the present price of Tk 54.95 per litre. Making the announcement, BERC Chairman Abdul Jalil said the price of retail LPG has witnessed the rise as the bulk LPG of Saudi contract price (CP) has increased globally at the effect of volatility due to Covid-19 recovery trend and also for the brewing tensions between Ukraine and Russia. "Saudi CP price will go up to $775 from the previous price of $420 per metric ton. Bangladesh's private LPG operators buy the bulk LPG on the basis of the Saudi CP," he told reporters at the virtual briefing. The other members of the BERC were present on the occasion. The BERC chairman said the price of the state-owned LP Gas Company's LPG will remain unchanged as it has no relation with the global market price. Read: Private operators’ LPG: Price goes up again According to industry insiders, the Saudi CP is normally announced at the end of every month to make it effective for the next month, and it takes 7-10 days for a shipment of the fuel to arrive in the country. Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally. The BERC for the first time fixed the retail-level LPG price on April 12 after holding a public hearing to comply with a High Court order.

The price of private operators' liquefied petroleum gas (LPG) has declined by Tk 50 to 1178 from Tk 1,228 per 12-kg container with effect from 6 pm today (Monday Dec 3) at the retail level, including the value added tax (VAT). Bangladesh Energy Regulatory Commission (BERC) announced the new price at a press briefing on Monday. As per the announcement, the prices for other quantities of the LPG will also go down in line with the new price at the same ratio. Read: BERC to announce new retail LPG price Monday morning The price of autogas for motor vehicles has also been cut down to Tk 54.95 from the present price of Tk 57.24 per litre. Making the announcement, BERC Chairman Abdul Jalil said the price of retail LPG has witnessed the fall as the bulk LPG of Saudi contract price (CP) has declined globally. "Saudi CP price has declined to $420 from the previous price of $765.75 per metric ton. Bangladesh's private LPG operators buy the bulk LPG on the basis of the Saudi CP," he told reporters at the virtual briefing.

The price of private operators’ liquified petroleum gas (LPG) has been raised to Tk 1,313 per 12-kg container from Tk 1259 with effect from Thursday (Nov 4) at the retail level.  Bangladesh Energy Regulatory Commission (BERC) announced the new price at a press briefing.  As per the announcement, the prices for other quantities of the LPG will go up in line with the new price. The price of autogas for motor vehicles was also raised to Tk 61.18 from the present price of 58.65 per litre.  Read:LPG gets costlier by Tk 226 per 12-kg container Announcing the new price, BERC Chairman Abdul Jalil said the regulator has to raise the price as the bulk LPG of Saudi contract price (CP) has gone up globally.  “Saudi CP price has gone up to $850 from the previous price of $550 per metric ton. Bangladesh’s private LPG operators buy the bulk LPG on the Basra from Saudi CP,” he told reporters at the virtual briefing.  The other members of the BERC were present on the occasion. The BERC chairman said the price of the state-owned LP Gas Company’s LPG will remain unchanged as it has no relation with the global market price. LPG industry insiders said the Saudi CP is normally announced at the end of every month to make it effective for the next month and it takes 7-10 days for a shipment of the fuel to arrive in the country. Read: LPG Price: Operators demand an increase but consumers want reduction  Most Bangladeshi private companies import their bulk LPG from the Middle East on the basis of Saudi CP and market it locally. The BERC for the first time fixed the retail-level LPG price on April 12 after holding a public hearing to comply with a High Court order.