IMF inquires about BERC's energy tariff model

The International Monetary Fund (IMF) delegation has questioned the Bangladesh Energy Regulatory Commission (BERC) about its model of determining bulk and retail gas and power rates in the country.

As the four-member delegation met with the regulatory commission, they also inquired about the frequency of tariff revisions or adjustments and whether the commission has the authority to independently determine pricing, according to a BERC source.

"They (IMF) wanted to know how we function and collect some information about us. They did not leave any opinion about us in the meeting,” said a member of BERC.

Regarding the tariff setting model and adjustment, he said, "We have shared the detailed methodology and BERC Act on price adjustment." 

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The BERC Act had a prohibition against increasing gas and electricity rates more than once each fiscal year until 2020, but this restriction was eventually removed.

Bangladesh recently requested a $4.5 billion loan from the IMF, which prompted the IMF team's visit. In light of this, the IMF has focused on reforms in a number of economic sectors and utilities, particularly a reduction in subsidies.

To gather information regarding these government organizations, IMF representatives have already met with the power division, power development board, Energy and Mineral Resource Division, Petrobangla, and Bangladesh Petroleum Corporation.