October 5, 2023, 9:08 am

FT Online

2019-12-03 21:27:26 BdST

DPDC, Desco for withdrawal of rebate for pre-paid consumers

Both Dhaka Power Distribution Company Ltd (DPDC) and Dhaka Electric Supply Company Ltd (Desco) have proposed withdrawal of the existing 1 percent rebate from pre-paid metre bills, and raising the retail tariff by about 5 percent.

The consumers having pre-paid metres are now enjoying the rebate on their total bills due to their payment in advance.

The two utilities placed the proposals separately on Monday during the ongoing public hearing of Bangladesh Energy Regulatory Commission (BERC) at the TCB Auditorium in the city.

As per the proposals, DPDC wants to raise its distribution cost by Tk 0.22 per kilowatt hour (each unit) to Tk 1.24 from existing Tk 1.02 while Desco wants to raise the distribution cost by Tk 0.24 per unit to Tk 1.39 from existing Tk 1.15 per unit. The hike is about 5 percent of their existing tariff.

This cost will be added to the bulk power tariff when the Berc announces the bulk tariff as both the DPDC and the Desco purchase electricity from Bangladesh Power Development Board (BPDB) in bulk price and sell it in retail to their consumers by adding the distribution cost.

The technical evaluation committee of the energy regulator, however, disagreed with the cost calculation and tariff estimation of the two utilities.  

While placing the proposals, the DPDC and Desco officials said they have an impact on their overall revenue income due to the current rebate system.

All the right groups, political parties and trade bodies that participated in the hearing opposed the DPDC and Desco proposals, saying if the power tariff is hiked at the retail level, it will severely affect the common people as well as the business.

They also criticised the two utilities for taking up some costly projects in the name of consumers’ benefits.

Consumers Association of Bangladesh (CAB) Advisor Prof Shamsul Alam said the two utilities have huge unrealised bills pending with the two city corporations of Dhaka.

Responding to this observation, DPDC officials informed that they will go for disconnecting the power lines of Dhaka North City Corporation and Dhaka South City Corporation if they fail to pay the dues by December 31.

Communist Party of Bangladesh (CPB) leader Ruhin Hossain Prince said DPDC has been forcing consumers to pay metre rent every month although it is illegal as per fair business ethics.

Gano Samhati Andolon convener Zonayed Saki said the power tariff is higher in Bangladesh than that in some states of India.

He said if the power tariff is hiked, it will have multiple impacts on the already uncontrolled commodity market across the country.   

Berc Chairman Monwar Islam presided over the hearing sessions while its other members Mizanur Rahman, Rahman Murshid and Masudul Haque Bhuiya were present.

The hearing on the tariff hike proposals of Bangladesh Rural Electrification Board (BERB) and West Zone Power Distribution Company Ltd (WZPDC) will be held on Tuesday in two separate sessions.

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