The New Nation - Internet Edition

UNB, Dhaka

Retail consumers may have to pay increased power tariffs as the distribution companies began placing proposals with Bangladesh Energy Regulatory Commission (BERC) for a raise.

According to official sources, Dhaka Power Distribution Company (DPDC) on Wednesday sent proposal for increasing its retail power tariffs by an average 14.75 percent. Dhaka Electric Supply Company (DESCO) is sending its proposal in the coming week urging an average 12 percent hike.

At present, these two companies are operating in different areas of the capital city with an identical power-tariff rate for their consumers.

BERC sources, however, said thought the DPDC and DESCO send separate proposals with separate tariff rates for the consumers living in the capital Dhaka, the watchdog agency would fix a common rate.

Following the move of the DPDC and DESCO, sources said, the other distribution agencies like the Rural Electrification Board (REB), Palli Bidyut Samities (PBS), West Zone Power Distribution Company Limited (WZPDC) and North-West Power Distribution Company Ltd as well as the Power Development Board (PDB) will follow suit.

As per rule, after receiving the proposals, the BERC will hold public hearing of the stakeholders and then give its decision.

Under this process, it is assumed that the retail consumers of electricity may have to pay increased tariffs by January next year.

Earlier, BERC had approved a 16 percent average rise in the bulk electricity tariffs effective from October 1, 2008.

This was applicable for only the power-distributing agencies like DESCO, DPDC and others who buy electricity from PDB and sell to retail consumers.

After the 16 percent raise in bulk tariffs, the DESCO, DPDC and other distribution agencies started facing loss in their business, which prompted them to move for raising retail-level power price.

"We have to pay an additional Tk 16 crore to the PDB for the enhanced bulk tariff rate," DPDC Managing Director Ataul Masud told UNB.

He said DPDC took over operations from DESA with 25 percent system loss. "But, now, we fixed target to bring it down to 16 percent," he said, adding, "since our system loss is little bit high, we had to propose a higher enhancement in tariffs than that of DESCO proposal."