Explore alternatives to power price hike

The Bangladesh Energy Regulatory Commission (BERC) hiked the bulk electricity price by 19.92 per cent on Monday.  Even though the State Minister for Power Nasrul Hamid assured that the bulk power price hike would not have any implication on consumers right away, a distributor has already submitted a proposal to increase retail electricity price.

Multiple downstream impacts are also feared as the energy regulator hiked the bulk-power tariffs with effect from December.

West Zone Power Distribution Company Limited (WZPDCL), which distributes power in Khulna and Barishal region, has already submitted a proposal to the BERC to hike electricity prices at retail level.

Engr Md Azharul Islam, managing director of WZPDCL, said, "The government higher-ups had asked us to submit a proposal regarding how much would distribution-cost [retail price] increase if the bulk price is hiked by 10 or 20 or 30 per cent." Asked how much would the price increase based on the bulk power price hike, he said the WZPDCL would need to increase the retail price by almost the same percentage point.

"If the distribution companies seek to hike the retail price, we will hold a public hearing in this regard and follow all the procedures as per law, and take further decisions," said BERC Chairman Abdul Jalil.

As the price of electricity however will continue to rise, we have to think of alternatives.

It is clear to all that there is a major need for radical reform in the energy sector, but unfortunately, we are yet to get any indication from our policymakers that they are considering the changes desperately needed to make the sector efficient as well as cost-effective.

We urge the ministries concerned—and the prime minister in particular, who will reportedly make the final decision regarding prices—to explore all other alternatives before coming to the suicidal conclusion to raise electricity tariffs, and fuelling another round of inflation in an already volatile economy. It's not just consumers; businesspeople, too, have warned of the grave repercussions of such a hike.

It would significantly raise production costs, making it impossible for export-oriented businesses in particular to compete with other countries, and lead to further reduction in our already depleting foreign exchange reserves.

The government must do what is necessary to reign in the mismanagement and systemic losses in the sector, instead of punishing the consumers, as well as the economy at large, for its failed policies.

There is no alternative to frugality and austerity to tackle the power crisis. The authorities concerned should find out where the electricity is wasted, where there is redundancy -- these things should be controlled.

Wherever energy can be saved, measures should be taken to do so. There are many unnecessary institutions and establishments where electricity can be controlled.

As we have seen, there are many places where electricity is used unnecessarily. These unnecessary places should be identified. Initiatives should be taken to cut-off those illegal connections. Effective measures should be taken to eliminate system losses that have been going on for years.

To ensure uninterrupted power supply, emphasis should be focused on increasing the production of gas within the country. The power plants which are not getting electricity, but the government has to give subsidies should be considered to shut them off.

A lot of electricity is being wasted all over the country. There are dishonest officials and employees related to electricity, who deprive the government of revenue by providing illegal electricity connections in exchange of money, strict action should be taken against them.

Without going into any kind of blame game, effective measures should be taken to save electricity by judging and analyzing the global reality.