BERC Act amended

Despite the experts’ criticism the government has taken over the authority to fix power and energy prices.

From now, the power, energy and mineral resources ministry will be able to increase or decrease the energy and power prices, without consulting the Bangladesh Energy Regulatory Commission (BERC).

So far, the BERC used to determine the power prices through public hearings.

In this regard, a President ordinance was issued by the law and justice ministry on Thursday, entrusting the energy ministry with the power to increase or decrease the electricity, gas and fuel prices ‘for special needs’.

Earlier on November 29, the cabinet approved an amendment to BERC Act-2003. According to the rules, the approved amendment was supposed to be discussed by the lawmakers in the National Parliament.

But in this case, the rule was not followed accordingly, and using constitutional power, the President directly issued the gazette notification.

According to the gazette published by the law ministry, a provision (34-A) will be added to the Section 34 of the BERC Act of 2003.

According to Section 34-A, the government may, in special cases, adjust the tariff of power and energy prices at the consumer level considering public interest by issuing gazette notification, even if the notification is in contradictory to any other section of the Act.

The gazette also said as there is no upcoming session of the Parliament in near future, the President issued this ordinance under his constitutional authority. The amendment of the Act shall come into effective immediately.

The government handed the right to determine the energy and power prices in Bangladesh to BERC in 2003. State-run Petrobangla, Bangladesh Petroleum Corporation, Bangladesh Power Development Board and other electricity and energy service providers apply to BERC for tariff increase, and the BERC consequently organises a public hearing to discuss the justification of the appeal.

Hearing the arguments of all stakeholders at the hearing, the BERC then decides whether the appeal would be granted or not.

As BERC’s process takes a long time to reach a final decision, through Thursday’s gazette, the government took over the control to fix power and energy prices.

From November last year to November this year, the government has increased fuel oil prices twice without consulting the BERC.

Recently, natural gas, bulk electricity prices have been increased through public hearing by BERC.

The government says rising energy prices around the world have created massive subsidy pressure on finance ministry. The government wants to reduce it. As a result, the gas, electricity and fuel oil prices have to be increased again in the near future. Meanwhile, the skyrocketing commodity prices have left the common peoples disoriented.

Recently, after the amendment to the BERC Act came into discussion, Consumers Association of Bangladesh (CAB) strongly protested it.

CAB Vice President Professor M Shamsul Alam told the media that the government is trying to unilaterally usurp the power of the people by amending the BERC Act. He opined that through this amendment will turn the BERC into a non-functional institution.

BERC officials also expressed strong displeasure over the government’s decision. But they do not want to talk publicly over the issue.

However, on anonymity, a BERC official described the amendment as an anti-people decision.

Energy expert professor M Tamim told The Business Post, “The regulatory body was formed to ensure transparency and accountability of the government works. The BERC Act was enacted in 2003 under the pressure of IMF, World Banka and ADB to ensure the transparency in power and energy sector.”