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Power companies now seek 20% retail price hike

Staff Correspondent
25 Nov 2022 13:26:32 | Update: 25 Nov 2022 14:43:38
Power companies now seek 20% retail price hike
— Representative Photo

Four out of six power distribution companies have already submitted their proposals to the Bangladesh Energy Regulatory Commission (BERC) to increase electricity prices by 20 per cent at the consumer level.

BERC member (power) Bazlur Rahman confirmed the matter to the Business Post on Friday.

On November 21, BERC increased the price of electricity at the wholesale level by 19.92 per cent, and claimed that there will be no impact on electricity prices at the retail level.

However, two days after the price hike at the wholesale level, the Power Development Board (PDB) submitted its proposal to BERC to increase the price by 19.44 per cent at the consumer level.

After their application, two more distribution companies, Dhaka Power Distribution Company (DPDC) and Dhaka Electric Supply Company (DESCO), submitted their proposals on Thursday. They sought a hike in the retail power prices in line with the wholesale level.

The West Zone Power Distribution Company Limited (WZPDCL), an electricity distribution company in the urban areas of 21 districts of the South-Western region, had also applied, but it was rejected by BERC for being an illegal move.

WZPDCL plans to resubmit its application next week along with the country’s largest electricity distribution company, the Rural Electricity Board (REB), and Northern Electricity Supply Company (NESCO), the power distribution company in northern urban areas, sources say.

“All applications submitted by distribution companies will be scrutinised and further action will be taken as per law and rules. There can be a short hike or no hike at all if these pleas are not reasonable,” said BERC member Bazlur Rahman.

As per the BERC Act 2003, after receiving any proposal from any power distribution entity on tariff adjustment, the BERC will hold a public hearing to listen to the opinion of different stakeholders, and then it will announce its decision within 90 days from the conclusion of the hearing procedures.