Dhaka Chamber of Commerce and Industry (DCCI) President Barrister Md Sameer Sattar has said the recent retail electricity tariff hike will ultimately create an additional economic burden on the smooth operations of the private sector and power-intensive industries.
“This is because the private sector is already struggling with high inflation and devaluation of local currency along with other economic challenges,” the DCCI president said in a press release.
Bangladesh’s economy has been experiencing unprecedented challenges due to the ongoing global economic crisis and broken supply chain system. One of the pressing challenges that our economy faces is the primary energy supply crunch, as we have a huge import dependency for primary energy sourcing.
Though the government is compelled towards such a move due to volatile international energy prices, Barrister Md Sameer Sattar hopes that the tariff will be adjusted rationally in order to minimise the adverse impact on the private sector and local industries.
As the government is already working on a plan to introduce a system for adjusting power and energy prices every month, he appeals for a competitive, predictable and gradual hike in electricity tariff in order to avoid any sudden price shock to the sector.
Barrister Sattar suggests that, since a price hike is inevitable given the current situation, it is important that a predictable price hike policy is put into place so that the private sector can make necessary planning for their businesses ahead.
Through this, the businesses will be able to take considered decisions as to how they will strategise their businesses for the days to come.
Also, even if there is a price hike to deal with the current challenges, the government must be prepared to bring the power prices down once the challenges are over. It should not be a one-way road.
Since Bangladesh has a high dependency on energy imports, Barrister Sattar also urged the authorities to explore renewable and alternative energy sources and, more importantly, prioritise local gas exploration.
To deal with any power shortage, he urged the authorities to regularly check the efficiency of all power plants and minimise any system loss. He feels that energy and power are the key resources to maintain industrial and investment competitiveness in Bangladesh.
