Return authority to energy regulator for setting power, energy tariffs, speakers urge govt

Speakers at a discussion meeting, organised by Consumers Association of Bangladesh (CAB), demanded the government return the authority to the energy regulator for setting power and energy tariffs.

They also urged the government to repeal the Speedy Increase of Power and Energy Supply (Special) Act 2010 in order to ensure transparency in the power and energy sector by eliminating corruption. 

"The Speedy Increase of Power and Energy Supply (Special) Act 2010 was enacted in order to provide indemnity to facilitate certain sections of business. If such law persists, there will be no competition in power and energy business", said economist MM Akash, Prof at Department of Economics, University of Dhaka, while addressing the event at the Jatiya Press Club on Wednesday.

CAB organised the discussion meeting titled: Demanding Justice in Energy Transition with its president Ghulam Rahman in the chair.

The event was also addressed, among others, Prof Dr M Shamsul Alam, Energy Advisor of CAB, Prof Badrul Imam, Department of Geology, University of Dhaka, and Dr Maha Mirza.

Dr Akash said that it is essential to return the power tariff fixation authority to the Bangladesh Energy Regulatory Commission. Otherwise, it will be difficult to stop the corruption in the power and energy sector, he said.

Development in the power and energy sector is necessary , he said adding, if the power and energy prices go beyond the purchasing capacity of common people, it would fail to do their welfare.

Prof Badrul Imam said, "We have not focused on the core issues in the energy and power sector. The root cause of corruption in the power and energy sector is importing LNG and coal. But the government did not look at any alternative to their import".

He said there is huge potential of finding 32-42 trillion cubic feet of gas across the offshore and onshore areas in the country.

But no adequate focus was put on exploration. On average, only one well was drilled annually when it needs drilling of 5-6 wells a year, he said.

Prof M Shamsul Alam said the government has been purchasing solar power from private producers at Tk 16.60 per unit while it is now being produced at Tk 7.5 per unit at a project on his university campus.

He said that as per law, the energy regulator is authorised to fix the tariff of solar power while now authority is delegated to the bureaucrats.

He demanded the return of authority of fixing power and energy prices to the BERC which would set the prices through a public hearing.

CAB president Ghulam Rahman said the Speedy Increase of Power and Energy Supply (Special) Act 2010 was initially enacted for two years and then its tenure was extended further in every two years and finally the extension was made for five years.

"But in no way such an act should persist in any logic and it should be immediately repealed", he added.