The Power Development Board on Tuesday proposed to increase electricity prices by 24.31 per cent on an average while consumer rights groups and trade bodies opposed the proposal. The consumer rights groups, during a public hearing in the matter convened by the Bangladesh Energy Regulatory Commission in its office in Dhaka,(The Newage)

also demanded that the high PDB system loss should be checked by increasing its efficiency and improving customer services.

In proposing the increase in power tariff, the power board’s general manager (commercial) M Jamalullah said the operation and maintenance cost of the board had increased with the increase in the salary of its employees and the increase in the cost of materials needed for power distribution.

The difference between the power supply cost and the sales stands at Tk 0.87 a unit, which is 24.31 per cent higher than the billing cost, and the power board is incurring losses for because of low tariff, Jamalullah said. ‘This is why the board has proposed to increase power tariff by 24.31 per cent. We have no option but to increase power price.’

Taking part in the hearing, the board’s chairman SM Mesbahul Islam said the board needed to increase the power price as the overall distribution cost had increased to a large extent.

He also said the power board should have its own power generation units so that it would not need to buy electricity from independent power plants.

Mesbahul admitted that the board had been faced with system loss of about 38 per cent.

Rural Electrification Board member (finance) Rezaul Huq Bhuiyan said the board needed to survive first to provide consumers with services. ‘There is no option but to increase power prices for its survival.’

Power price for household connections is now Tk 3.58 a unit on an average and the board proposed it should be increased to Tk 4.45.

A number of rights groups and trade bodies, including the Consumers Association of Bangladesh, Consumers’ Group, Transparency International, Bangladesh, Federation of Bangladesh Chamber of Commerce and Industries, Dhaka Chamber of Commerce and Industry and Law Dev (Bangladesh), during the hearing asked for elimination of corruption, increase in efficiency and improvement in services.

Consumers Association of Bangladesh representative M Shamsul Alam said the board was incurring huge losses because of its unusual high rate of system loss, which is about 38 per cent.

If system loss can be cut down to 10 per cent and corruption can be eliminated by increasing the efficiency in running the organisation, the cost of a unit of power will be around Tk 3.50, he said. ‘Why will the consumers pay for system loss and inefficiency of the power board?’

Turin Afroz of the Law Dev (Bangladesh) argued the board’s proposal was in no way justified. ‘The board speaks only of tariff increase, but never talks about improving its services.’ She asked the power board to improve its consumer services.

After the hearing, the acting commission chairman M Mokhlesur Rahman said the arguments of both sides were recorded and they would hear more arguments and on the issue in another session on October 6 before giving the judgement.

He said interested organisations or individuals would need to their names with the commission by August 31 to take part in the hearing in power tariff increase.

The Rural Electrification Board on July 8 also proposed to increase power prices by 11.52 per cent.