. Faruque Ahmed
Prices of electricity, both atthe wholesale and retailers' level, may go up in a couple of days, sourcesclose to the Energy Regulatory Commission (ERC) said Tuesday adding that theCommission has held hearing and arrived at the decision.
At the bulk level prices may goup from 5 to 7.5 percent while at the retailers' level the price may be up by 5percent. Electricity prices were raised at bulk level in February and Augustlast year at 18 percent. At the retailers' level it was also increased at 5percent in February last year.
In December again power tariffwere raised by 20.5 percent at retailers level and in a couple of months, it isgoing to be raised again both at the wholesale and retailers levels.
Analysts say, public has no sayexcept to obey the orders of the government which in turn is working with IMFand such other donors agencies, however, not without reasons. Bad economicmanagement is forcing the government to ask for loan and they are in turnforcing to restructure the economy to supporting their global economicobjectives.
Moreover, political considerationencourages the government to allow setting up fuel driven power plants bypartymen without farsight what consequences it may wrought at the end.
"We can blame none butourselves," said an official dealing with the balance of payment situation at Bangladesh Bank
The power sector subsidy hassoared to almost Tk 30,000 crore even after last year's price hike and what aninefficient government having ties with big business can do without passing theload on to the people.
One may wonder why the subsidyhas soared so much despite last year's price adjustment and the immediateanswer may be that the huge import of furnace oil to run the newly set uprental power plants are to be blamed for it.
Analysts say there is no doubtabout it. But is it the only factor to blame for the escalating electricitycost?
What about siphoning of powersector budget, why the government is not cutting back misuse of money. Reportssaid in the power sector there are many projects just on paper, duly processedand disbursement made against as many work components which in fact do notexist in the ground at all. Contractors and departmental top brasses allegedlyshare this money only to add to the higher cost of the power sector to be metedout from a surging subsidy at the end.
This is almost an accepted normin the power, communication, LGRD and such other sectors according to personswho have worked and extensive knowledge about the working of these sectors.
ERC sources said that the PDB'slosses this year was initially estimated at 5,200 crore but real indicationsare that the losses may exceeds Tk 9000 crore. Added to it the huge subsidy forthe import of furnace oil, the overall power sector losses may stand this yearat over Tk 30.000 crore.
The question is how far thiscountry and its people, business and industry can sustain such heavy load ofsubsidy in terms of high cost of business and global competitiveness whilethere is hardly any improvement in load shedding condition.
City sections now routinelyrotates days and nights without electricity and the scenario of the rural lifeis further anguishing.
The government has claimed it hasadded 3000 MW power to the national grid over the past three years. But thequestion is where the power has gone. The government is telling it is bringingelectricity from India but it hears like a fairy tale.
A former power secretary A.H.N.Akhtar has given partial answer to this question.
He said PDB's power generation in2007 was 3,772 MW while the contribution of private power plants was 1290 MW.
But now the government hasprioritised the setting up of private power plants including rental plants andin doing so, it has altogether neglected repair and maintenance of the oldpower plants putting their generation capacity down to about 1400 MW. Almost2000 MW of their capacity put on outage.
One PDB director claiming not tobe named said, the government it has installed 4,000 MW capacity of which 3000MW added to the national grid.
But power generation from thesesources now stands at around 2700 MW or a bit higher occasionally. Theremaining capacity is not available partly because of shortage of fuel supplyand party for installation of obsolete machinery causing frequent productionoutages.
The PDB source said presentgeneration capacity now stands between 5000 t0 6000 MW while demand is hoveringbetween 5,600 to 5,700 MW leaving a supply gap of 5-6 00 MW.
What happens in the meantime,observers say is largely the switching of the power generation from the publicsector to the private sector and more essentially to the wealthy people closerto the ruling party. Summit Group alone gets 1200 MW contract. Orion securedcontract for another 1200MW. Beximco gets a fresh contract of 540 MW plant.
The government has authorized torun them on fuel fired which has sent the oil bill surging to almost double.Under the sovereign agreement the government is bound to compensate the highfuel cost to electric plants thus surging the subsidy. But as the government issuffering from the resource constraints, it tends to pass the load of thesubsidy on the users like house holds, business and industry.
But the analysts wonder how far a nation can be able to sustain such
high electricity bills frequentlyrising and impacting the nation's capacity to run business and factories atcompetitive cost. How the common people can afford a life with such a surgingpower cost.
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