Editorial
Electricity price hike
Streamlining of management needed
Coming on the heels of another hike effected only two months ago, prices of electricity have soared again by 7.49 per cent for bulk clients and by 6.25 per cent for retail users. And again, Bangladesh Energy Regulatory Commission (BERC) chairman has come up with the explanation of price adjustment for fuel-based power plants following rise in oil prices in international market, and reducing pressure on government subsidies for power generation. This is the third instance of price adjustment in the span of four months. Despite claims of increase in power generation, power shortage has intensified with the summer about to set in, causing immense suffering to consumers at all levels.
Granted that retail prices may go up relative to increase in production cost, the way electricity prices are being frequently hiked appear to be predicated upon myopia and insensitivity towards management lapses. Systems loss, inclusive of unauthorized connections, under-billing and managed billing, is largely responsible for over-pricing of electricity and consequent need for increased subsidies. These are factors which are avoidable and for which the state-run production and distribution companies should be held accountable. Instead, the regulatory body once again has decided to pass it all on to the consumers.
Economists are unanimously of the opinion that the latest hike will have a domino effect, further increasing inflationary pressures. So, consumers who are already reeling from runaway inflation will have to face another blow of inflated prices of both food and non-food items. It is the people who will also have to bear the brunt when it comes to slashing government subsidies.
Time, indeed, has come for the government to open its eyes to the irregularities, waste, and corruption on the management side. It should also seriously consider opting for alternative sources of energy. Given the gas crunch and high prices of fuel we could move towards coal-based power plants instead of running the fuel-based rental power plants.
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