Power Tariff at Retail Level: Desco proposes 6.34pc hike

Dhaka Electric Supply Company Ltd (Desco) yesterday sought 6.34 percent retail power tariff hike to avoid losses. 

At a hearing at the Bangladesh Energy Regulatory Commission (Berc), the power distribution company said the retail tariff should be raised to Tk 7.40 a kilo-watt hour unit from existing Tk 7.20.

The company supplying power to areas such as Uttara, Gulshan and Mirpur in the capital said it had been incurring 5 percent loss because of the gap between the increases in the retail and bulk tariffs in 2015. If the bulk tariff is raised this time, it will have to count extra expenses while providing electricity to consumers.

Ruhin Hossain Prince, a member of the Communist Party of Bangladesh, said the proposed tariff hike would have multiple effects on consumers. “So, the tariff hike must be stopped.”

The Consumers Association of Bangladesh opposed the power tariff hike proposal, saying Desco could easily operate with its current tariff rate. 

Desco supplies power to 3.49 percent consumers in the country, according to the annual report of the Power Division for the year 2015-16.

The Berc yesterday said it would carry out a feasibility study to find the economic impact of an increase in tariff on consumers.

An economic impact analysis is required to raise the power tariff, said Monowar Islam, chairman of the Berc.

Over the last eight years, retail power tariff has been increased seven times -- the last being in September 2015.

The Berc will have to announce its decision within 90 working days after the power tariff public hearings to be concluded tomorrow.