Chattogram's business community demands electricity tariff revision
The petitioners said the tariff hike for industrial establishments is a move deemed as highly unusual and burdensome
To address escalating concern over the hike in electricity tariffs, industrial stakeholders have petitioned State Minister for Ministry of Power, Energy and Mineral Resources Nasrul Hamid, urging for a reconsideration of the tariff revision and a halt to the implementation of the "unjustified" price hike.
In the petition sent today (6 March) under the leadership of AM Mahbub Chowdhury, vice president of the Chattogram Metropolitan Chamber of Commerce and Industries, the detrimental impact of the tariff increase on the country's burgeoning industrial sector was underscored.
"With industries already grappling with challenges such as fluctuating raw material prices and foreign exchange shortages, the sudden spike in electricity tariffs threatens to exacerbate their plight, potentially leading to factory closures and impeding the nation's production, growth, and employment processes," it said.
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According to the petitioners, the tariff for industrial establishments consuming bulk electricity at the retail level has witnessed an unprecedented increase from approximately Tk0.84 to Tk1.35 per unit, a move deemed as highly unusual and burdensome.
Moreover, the power demand charge, previously set at 80% of the permissible load with a minimum charge of Tk75, has been abruptly raised to Tk90, a decision perceived as unjust and unfair.
The petitioners further question the rationale behind the sudden implementation of the notification-bill on February 29, 2024, without allowing sufficient time for stakeholders to adapt.
They assert that amendments to such decrees should come into effect from the subsequent billing month, March 2024, to ensure fairness and transparency.
On 29 February, the government increased average electricity tariffs by 8.5%.
At the wholesale level, the average price increases to Tk7.04 per unit from Tk6.70, while at the retail level, the price jumps to Tk8.95 from Tk8.25.
The increase saw an immediate effect instead of March announced earlier.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said February bills for prepaid meter customers will be adjusted in their next payment.
Analysts and experts said the move implies that individuals and businesses must allocate a larger portion of their budget to cover electricity expenses. This will reduce their disposable income, while also impacting businesses' profit margins and competitiveness.
They warned that this hike could contribute to an increase in inflation as electricity serves as a fundamental input in the production process across various sectors. As businesses grapple with higher electricity costs, they are likely to pass on these expenses to consumers by raising prices.
