Urging the government not to increase the tariffs of power and energy, the Consumers Association of Bangladesh on Thursday alleged that the tariffs were increasing to protect the interests of dishonest businesspeople.
The consumer rights body also urged the government not to increase the prices on excuse of International Monetary Fund’s condition of loan release, but to stop the corruption and irregularities in the sector.
While reading out a written statement at a press conference of CAB at Sagar-Runi auditorium of Dhaka Reporters Unity in the city, CAB energy adviser M Shamsul Alam said that the power and energy sector’s expansion was going on through uncompetitive private investments under the Quick Enhancement of Electricity and Energy Supply (Special Provisions Act), 2010.
‘Uncompetitive investments have created a scope for the investors to make more profit through looting by increasing the charges of supplying electricity and it triggered swift increase of financial deficit,’ said Shamsul.
He said that the government was hankering after getting the IMF’s $4.7 billion loan fund as a result of giving less importance on people’s interest and energy.
‘We urge the government to control dishonest power and energy businesses and backtrack from increasing tariffs,’ he added.
Addressing the press conference, energy experts and economists urged the international lenders like IMF and World Bank not to advise to increase tariffs but to find out the inconsistency in the sector.
Ijaz Hossain, former dean of the Faculty of Engineering at the Bangladesh University of Engineering and Technology, said, ‘I will pay the government-set price of power and energy, but why I will take the responsibility of thefts and system losses. Power plants are being constructed despite having no energy.’
He also posed a question why the World Bank and IMF were not finding out the irregularities.
‘Bangladesh is still producing electricity using 30 per cent furnace oil while nowhere across the globe electricity is produced using more than five per cent,’ energy expert Ijaj said, posing a question why international lenders are not taking steps in this regard.
He wanted to know the reasons of setting up power plants of 25,000 megawatts capacity as the sector rarely produces 16,000 megawatts in a day.
‘I think that power plants for producing 15,000 megawatts are enough for us at this moment,’ he said, asking that why IMF did not notice the system losses in the power sector.
Dhaka University economics department Professor Mahbubul Mokaddem Akash said that as the power and energy were static products or services, increasing tariff through notices could not be accepted.
‘The tariff adjustment will be taken place through Bangladesh Energy Regulatory Commission’s public hearing. But, an executive order had shrunk the power of BREC and now the prices of power and energy are increased through executive orders. It is leading people to losing their rights,’ he added.
CAB president Ghulam Rahman said that IMF was giving advice to reduce deficits by increasing tariffs, but it is not logical and correct judgment at all.
‘We want to tell IMF to find out the inconsistency and come back from the advice of increasing tariffs,’ he added.
CAB also placed 13-point recommendations to bring the deficit in the power and energy sector within control in three years.
The recommendations include banning uncompetitive investments in power, energy and renewable energy sector through enacting law and giving BERC the sole authority to adjust the prices of power and energy.
