Consumers Must Not Bear Burden of ‘Wasteful Expenditure’: CAB

The Consumers Association of Bangladesh (CAB) has strongly opposed a new proposal to raise electricity prices at a time when ordinary people are already struggling under the pressure of high inflation and rising living costs.

The organization voiced its protest while participating in a public hearing on proposed changes in electricity tariffs, organized by the Bangladesh Energy Regulatory Commission (BERC).

CAB said inefficiency, lack of transparency, and what it described as ‘wasteful expenditure’ in the power sector must not, under any circumstances, be passed on to ordinary consumers.

The Bangladesh Power Development Board (BPDB) on Wednesday proposed increasing wholesale electricity prices by Tk 1.20 to Tk 1.50 per unit during a two-day hearing held at the Krishibid Institution in Farmgate. On the second day, Thursday, distribution companies proposed a retail tariff hike of up to 10 percent, also requesting that any increase in wholesale prices be passed on proportionately to consumers.

Ordinary People Under Severe Economic Pressure

In its written and oral submissions to BERC, CAB said the relentless rise in prices of essential commodities and energy costs has pushed people into severe economic hardship. It warned that any further increase in electricity prices would fuel inflation and have a devastating impact on public life.

Inefficiency in Power Sector and Burden of Capacity Charges

CAB expressed strong concern that inefficiencies in the power and energy sector, system losses, delayed projects, excessive and wasteful spending, and the long-debated burden of ‘capacity charges’ are being unfairly transferred to consumers. It said ensuring good governance, accountability, and efficiency in the sector is now essential to reduce production and supply costs.

The organization warned that any increase in electricity prices would sharply raise production and supply costs in industries, agriculture, transport, and small businesses. It added that the full burden would ultimately fall on consumers, making life even more difficult for low- and middle-income groups.

CAB’s Six Recommendations for Consumer Protection

In the public hearing, CAB presented six specific recommendations to address the power sector crisis and protect public interest. Among them, it said electricity price hikes are not acceptable without a fair reassessment of generation costs, especially since local consumers are not receiving the full benefit of lower international fuel prices. It also reiterated that inefficiency, system losses, delayed projects, excessive costs, and capacity charges should not be passed on to consumers, and called for governance and accountability reforms instead.

The organization further recommended long-term planning in the power sector, increased use of renewable energy, improvement of transmission systems, and effective measures to reduce waste in order to lower overall costs.

CAB also urged a transparent review of international market conditions, generation costs, capacity charges, system losses, and the overall financial management of the electricity sector to formulate a realistic and consumer-friendly pricing policy.

CAB Urges BERC to Prioritise Public Interest

CAB urged the BERC not to limit itself to formal public hearings on paper, but to priorities the country’s current socio-economic realities, national economic conditions, and public interest. It expressed hope that the commission would avoid any ‘self-defeating’ decision to raise electricity prices at a time when ordinary people are already under extreme pressure.