Tuesday, 30 September 2008
Power will be 16 percent costlier for bulk consumers from Oct 1 in a decision announced by the regulators Monday that will soon see rates go up for retail customers.
For bulk consumers, the average price of one kilowatt-hour power will be upped to Tk 2.37 from Tk 2.04.
Golam Rahman, chairman of Bangladesh Energy Regulatory Commission (BERC), the price rise was a logical conclusion.
"If PDB doesn't get the right price, it won't be able to provide the service expected of it," the chairman said.
"The price has been increased taking everything into consideration."
He said BERC had asked PDB to submit by Jan 15 a plan of action to improve the quality of services.
"We had proposed a 41 percent increase," the PDB chairman said. "The commission's decision vindicated our position."
The bulk consumers of PDB say that the commission would soon be approached for a raise at the retail level.
Ataul Masud , managing director of Dhaka Power Distribution Company Ltd, is plotting a price increase for his buyers.
"I have just heard that the BERC has increased the price of power. When we get the letter, we will be able to say how much price would have to be increased at retail subscriber level." he told bdnews24.com.
"It has to be done in the quickest time.
"We have to increase the price. Otherwise we will not be able to survive."
Habibullah Majumder, chairman of the Rural Electrification Board (REDB), also said the price of electricity had to go up.
"We'll however try to ease the pressure on our subscribers. We will try to cut down on system's loss and improve management," he told bdnews24.com.
The Commission in a press release Monday said the new rate, effective Oct 1, would not affect the wheeling charge given to the Power Grid Company.
It said other conditions relating to bulk power supply would remain unchanged.
As per the new rate, Dhaka Power Distribution Company will have to pay Tk 2.41 for 132 KV and Tk 2.44 for 33 KV.
REB will pay Tk 2.41 for 132 KV and Tk 2.30 for 33 KV.
Dhaka Electric Supply Company, West Zone Power Distribution Company, North-West Zone Power Distribution Company and PDB will also pay Tk 2.41 for 132 KV and Tk 2.44 for 33 KV.
The new distribution companies that would be created in future will have to pay at the same rate.
The power tariff has been revised 19 months after the last increase—from March 1 2007.