CAB calls for power, gas price cuts

The Consumers Association of Bangladesh (CAB) has proposed a reduction in electricity and gas prices – to help people increase their buying capacity during Covid-19 pandemic, and thus allowing the crumbling economy to revive.

The non-profit voluntary organisation placed its proposal to the Bangladesh Energy Regulatory Commission (Berc) in an application on Wednesday, according to a press release. 

The consumer rights group also made 13 suggestions for price reductions after analysing the existing tariffs of power and energy.

In the application, CAB's Energy Advisor Professor Dr M Shamsul Alam said the country' economy has been destroyed by the novel coronavirus pandemic.

"To restructure the economy, reductions in the prices of electricity and gas by rationalising the sector's unreasonable expenditure is urgent," he added.

He said the purchasing power of consumers has fallen drastically in the current situation arisen out of the pandemic. Therefore, the government is not getting revenue. 

"The expenditure of consumers will not increase if the prices of goods and services were not reduced. For that, the prices of power and energy need to be reduced first," said Professor Shamsul Alam. 

On behalf of CAB, he delivered 13 proposals or suggestions through which the Berc can reduce the energy price.

The CAB proposals include cancelling capacity charges of all rental power plants and shutting all the public and private power plants over 20 years of age, proper use of gas and electricity development funds and stopping purchase of oil-based electricity from private power plants.

Berc Chairman Md Abdul Jalil told The Business Standard that price adjustment happens through a process which is set by the commission act.

"As part of the process, we will try to find out whether we can arrange a public hearing on the proposal or not," he said.