BERC amendment bill: A tool to make energy costlier | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Wednesday
December 06, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Food
    • Habitat
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
WEDNESDAY, DECEMBER 06, 2023
BERC amendment bill: A tool to make energy costlier

Energy

Eyamin Sajid
23 June, 2020, 10:40 pm
Last modified: 23 June, 2020, 10:45 pm

Related News

  • Pvt power producers seek default rule waiver amid financial headwinds
  • Bangladesh Energy Prosperity Declaration 2023
  • Govt should pursue clean energy goals despite challenges: CPD
  • PM orders redistribution of water, electricity subsidies based on area, income
  • Maximising biofuel potential stressed for zero wastage in Bangladesh

BERC amendment bill: A tool to make energy costlier

If this bill is approved in parliament, then the government will be able to increase gas and electricity prices multiple times a year

Eyamin Sajid
23 June, 2020, 10:40 pm
Last modified: 23 June, 2020, 10:45 pm
Photo: TBS/Mumit M
Photo: TBS/Mumit M

With the reasoning to maintain harmony between energy prices in the domestic and international markets, the Ministry of Power, Energy and Mineral Resources on Tuesday placed the Bangladesh Energy Regulatory Commission (Amendment) Bill, 2020 in the parliament.

The bill will empower the BERC to make any change in tariff more than once per financial year. Currently, the law permits the commission to make any change in tariff only once per year.

This initiative has been taken following a case that was filed at the High Court in 2017, challenging the BERC for increasing the gas price twice with a single order. The court had then stayed the price hike of the second phase.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

If this bill is approved in parliament, then the government will be able to increase the gas and electricity prices multiple times a year.

However, State minister for Power, Energy and Mineral Resources Nasrul Hamid said otherwise while placing the bill in parliament.

"The price of energy changes continuously in the international market, and the government needs to adjust the price in the local market accordingly. And that is why the amendment was proposed," he said.

Later, speaking to The Business Standard, Nasrul Hamid added that the amended bill was placed before parliament based on a request by the BERC.

"The BERC thinks that in future we will need to increase or decrease energy price when we reach a stable energy situation. That is why they wished to bring the revision to the existing law," he said.

Energy experts are concerned that the bill will help the government extract more money from the power and energy sector by increasing tariff.

They pointed out that in the last decade the power and gas tariffs were increased ten times. If the government wants to adjust the energy tariff with the international price, they should do it with more transparency.

Prof Dr Nurul Islam, a senior energy expert in the country, said the law should focus on the "adjustment of the energy price consistent with the international market" and "there should be a humanitarian aspect too."

"Under this law, the energy price in Bangladesh should increase or decrease based on the ups and downs of price in the international market," he said.

To uphold the people's respect for this law, he opined that the government should organise a hearing.

Some experts said this initiative has been taken to source more money from the sector so that the government can continue its extravagances and irrational expenditure.

Earlier in December, The Consumers Association of Bangladesh (CAB) termed the initiative as a tool to make gas and electricity more expensive.

"Now they can increase the energy price at any time in a year, which is not possible in the existing act. The government has changed the act to raise money from consumers for its extravagant expenses," said M Shamsul Alam, energy advisor to the CAB.

Data from the Bangladesh Power Development Board (PDB) revealed that in the 2018-2019 financial year, it had to pay Tk8,930 crore as a capacity charge to independent power producers and rental power plants. Although, around 43 percent power generation capacity remained idle.

The total payment to independent producers, small independent producers and rental plants was Tk20,781 crore in the same fiscal year.

On February 27, the price of electricity per kilowatt-hour was hiked by 5.3 percent at retail and 8.4 percent at wholesale levels.

In July last year, the government increased gas price for all users on average by 32.8 percent which is an all-time high, putting consumers under an additional burden of Tk8,620 crore per annum.

Bangladesh / Economy / Top News

Bangladesh Energy Regulatory Commission / energy

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • BNP Vice Chairman Shahjahan Omar. Photo: Daily Sun
    Shahjahan Omar faces backlash from pro-BNP lawyers at Supreme Court
  • Prime Minister Sheikh Hasina. Sketch: TBS
    PM Hasina 9th on Forbes list of most powerful women in politics
  • File photo: Collected
    BNP now Jamaat's 'B-team': Quader

MOST VIEWED

  • Caption: Illustration: TBS
    Source tax on land registration cut again
  • This file photo from December 2019 shows a rider driving his motorcycle through cold wind and fog. A scene not yet visible this year. Photo: Mumit M
    Woe for seasonal crops, vegetables as winter comes late 
  • File Photo: Reuters
    $1.08 billion could be added to Bangladesh's dwindling forex reserves
  • Photo: Courtesy
    Woman entrepreneur Sangeeta Khan dies at age 62
  • 59 DSE stocks face downgrade to junk category
    59 DSE stocks face downgrade to junk category
  • Dollar pressure rises as short-term foreign debt drops $300m in October
    Dollar pressure rises as short-term foreign debt drops $300m in October

Related News

  • Pvt power producers seek default rule waiver amid financial headwinds
  • Bangladesh Energy Prosperity Declaration 2023
  • Govt should pursue clean energy goals despite challenges: CPD
  • PM orders redistribution of water, electricity subsidies based on area, income
  • Maximising biofuel potential stressed for zero wastage in Bangladesh

Features

Photo: Rexy Jason Gomez

A big love for the small wheels

1h | Features
Dhaka’s FDC,  Japan Garden City and Shia Masjid were all part of Gudaraghat once. PHOTOS:  Syed Zakir Hossain

What the remaining Gudaraghats remind us of Dhaka's long-lost water bodies

8h | Panorama
A trove of research underscores the perilous consequences of relying on plastic utensils, a narrative mirrored by the western world's pivot towards sustainable alternatives - ceramic, brass, or clay dinnerware. PHOTO: TBS

While we lose our sustainable traditions, the West pivots in the opposite direction

7h | Panorama
Ghulam Ali

Ghulam Ali: Voice that makes ghazals bloom

1d | Features

More Videos from TBS

What is 'obstructing the field' out?

What is 'obstructing the field' out?

10m | TBS SPORTS
Most Ukrainians are losing interest in going to war

Most Ukrainians are losing interest in going to war

2h | TBS World
Putin to visit UAE and Saudi Arabia

Putin to visit UAE and Saudi Arabia

4h | TBS World
Will the United States - Israel attack Yemen?

Will the United States - Israel attack Yemen?

18h | TBS World
EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]