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PDB for hiking electricity price by Tk 0.87 per unit

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Update: 2017-09-25 06:29:21
PDB for hiking electricity price by Tk 0.87 per unit BERC hearing, photo: DH Badal

DHAKA: Bangladesh Energy Regulatory Commission (BERC) has recommended hiking of the wholesale electricity price by Tk0.57 (11.78 per cent) per unit instead of Tk 0.87 (14.78 per cent) proposed by the government-run Power Development Board (PDB). 

BERC made the recommendation after holding a discussion and hearing on the PDB proposal at BERC office in city on Monday (Sep 25).

PDB submitted the price hike proposal to BERC earlier on February 20. They then suggested hiking the price by Tk 0.72 per unit. However, as the power production cost has increased since, PDB General Manager (Commercial management) Kawsar Amin Ali proposed hiking the price further to Tk 0.87.

PDM said the average production cost of power stood at Tk 5.72 per unit in the 2016-17 fiscal but the current price per unit is only Tk 4.85 that is causing Tk 0.87 loss to PDB.

The PDB GM said although subsidies were supposed to be given for covering the loss, loans was given instead. So, from the year 2006-07 to current fiscal, the amount of loans now stands at Tk 39,610 crore and the amount of interest stands at 4,481 crore. The overall situation is pushing PDB towards a crisis. 

PDB is now managing its expenditure from the depreciation fund to resolve the crisis. Moreover, depreciation fund should have had Tk 22,370 crore but in reality there is Tk 319 crore only. Due to the financial crisis, overhauling maintenance work is being hampered, he added.

BDST: 1625 HRS, SEP 25, 2017
AP/SMS

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