Non-stop power supply on Industries grumble over the higher rate effective from June 1,Bangladesh

BANGLADESH NEWS

Bangladesh Energy Regulatory Commission (Berc) yesterday announced an uninterrupted power supply scheme for industrial use fixing charge for per unit of electricity at more than double the existing price.

The idea has triggered mixed reaction among businesses as they welcomed it but termed the price fixed “too high”.

Currently, the average price of per unit of power for industrial use is Tk 5.55. The Berc set the average price of per unit electricity for the premium connection at Tk 14.44.

The new rate will come into effect from June 1. However, the uninterrupted power supply is still an option, not mandatory, to industries.

The energy regulatory commission has introduced three premium rates for the uninterrupted power subscribers, who are termed as “Q Class power consumers”.

For 132KV voltage level, per unit power will cost Tk 13.88 while for 33KV voltage level Tk 14.45 and 11KV voltage level Tk 14.99 per unit, according to the new scheme.

Industry owners said the uninterrupted power would create discrimination in production cost, if the prices were not lowered.

MA Momen, acting president of Federation of Bangladesh Chambers of Commerce and Industry, said the government's concept was good, but the prices were too high.

“Businesses will not remain competitive if we buy power at this price,” he said, adding, “On the other hand, we have no choice but to say yes to the Berc decision as our units are now running on high-cost diesel and furnace oil for seven to eight hours a day.”

Considering this, the option is good but the government should come up with a uniform price for the premium packages keeping competitiveness in mind, he said.

Amjad Khan Chowdhury, president of Metropolitan Chamber of Commerce and Industry, also welcomed the uninterrupted supply of power.

“But the price of electricity should be reasonable as the production cost has already gone up due to various reasons,” he said.

Asif Ibrahim, president of Dhaka Chamber of Commerce and Industry, also urged the government to lower the electricity price.

The supply would definitely increase production in industrial units, he added.

Nasir Uddin Chowdhury, vice-president of Bangladesh Garment Manufacturers and Exporters Association, said the system would make the production cost vary, as big industries would be able to purchase electricity at high prices but the small factories would find it harder to afford non-stop power supply at this price.

“No doubt we need uninterrupted power supply, but the government should revise the prices,” said Jahangir Alamin, president of Bangladesh Textile Mills Association.

Berc Chairman Syed Yusuf Hossain at a press briefing yesterday said the government had introduced the system to reduce subsidies and inflation.

“Once the system is launched we will not need to increase power prices frequently, as the sale value and the production cost is almost the same,” he said.

On May 2, Berc held a public hearing in its office as per an application from Bangladesh Power Development Board (BPDB). According to the hearing, BPDB will primarily sell 500MW of electricity under the scheme throughout the month.