Dhaka, July 10 (BDNEWS) – The government is finally going to increase electricity tariff by five per cent in urban areas very soon but the date of execution of the new rate is yet to be finalised.
Admitting move, state minister for Power Maj Gen (Retd) Anwarul Kabir Talukder Monday at a seminar said, "We have to increase the tariff rate of electricity in the urban areas rationalising the rate with rural areas as rural people have now to pay higher rate than that of urban people."
Moreover, it is also important to avert huge loss of the Bangladesh Power Development Board (BPDB) to revitalise the board from power generation to the sales points, the minister added.
When asked, he, however, did not mention the date of the execution of the revised rate for the consumers.
The Power ministry sources said the concerned division has already sent the proposal to the government to increase the tariff by five percent in the country's urban areas that is 27 per cent of the country.
Dhaka Chamber of Commerce and Industry (DCCI) organised the seminar on "Efficiency Improvement in Energy Consumption" in the city.
In response of the increased power tariff, Federation of Bangladesh Chamber of commerce and Industry (FBCCI) president Mir Nasir Hossain said the government should increase the power tariff with a lower rate for the industry, which has already consumed electricity at an incremental rate.
The World Bank has been pressuring the government to increase the tariff by 30 per cent to avert losses in generation, distribution and transmission apart from bringing investment in the sector.
According to the tariff proposal, PDB would increase its tariff by 10 percent for bulk electricity consumers, including Dhaka Electricity Supply Authority (DESA), DESCO, and 9 richest Palli bidyut Samity, who are also working in the urban areas.
Even proposed tariff is implemented, sources said, the PDB would still have 20 percent gap between the production cost and selling price.
The increased tariff would be able to reduce PDB's loss at Tk 426 crore from existing TK 879 crore. Currently, the PDB is producing electricity at Tk 2.42 per kilowatt while it is selling at Tk 2.17 per kilowatt.
According to the PDB, the increased tariff would not affect the customers, who consume below 100 KW per month.
The Power Division officials justified the tariff rate increase by highlighting the continuous financial loss being suffered by the PDB and DESA, and said huge amount of outstanding bills was causing liquidity crisis in the power sector.
Last time the government revised power tariff in September 1, 2003. There are now about 7 million electricity consumers in the country.
BDNEWS/1834 hrs
