PDB seeks to raise bulk electricity price

Seeking a hike in bulk electricity tariff, the state-owned Power Development Board (PDB) has submitted a proposal to the Bangladesh Energy Regulatory Commission(BERC), sources at the PDB and BERC confirmed on Monday. 

Highlighting electricity generation and purchase cost of high-cost liquid fuel-fired private sector plants, the PDB urged the BERC to adjust the price without specifying any percentages. 

"We did not demand any specific percent in our proposal. We want the BERC to consider the issue," said the PDB Chairman Khaled Mahmood.

However, the PDB officials informed that in 2020 calendar year Tk36,600 crores will be earned from electricity sell but the organization will need Tk45,208 crore to meet its expenses. So, the PDB urged the BERC to consider the Tk8608 crore deficit.  

The last electricity price revision happened on November 23, 2017, when the BERC had raised the price of each unit by Tk 0.35, marking a 5.3 percent increase.

This was the eighth time during the Bangladesh Awami League administration's second term since 2009.

Now 46.14 percent power is being generated from gas, 22.93 percent from furnace oil, 10.24 percent from diesel, and 2.84 percent from renewable sources. The rest of 5.44 percent is being imported, according to the Power Division data.

The electricity generation cost from furnace oil plant per unit is Tk11.38. Whereas per kilowatt diesel-based generation cost is Tk 20.59 -27.46, says the PDB annual report 2017-18.

Electricity generation cost of the gas-based plant is Tk2.47-4.22, says the same report. 

But the PDB is selling electricity to the distributor company at a lower price, incurring an average annual loss Tk5000 each year. In last 10 years, the organization has made a loss of Tk 50,000 crore. 

Demanding price hike at the distribution level, one of the six distribution companies has also submitted its proposal to the BERC. Where other companies will submit their proposal by this week, said a BERC source.