Dhaka, Sunday

25 February 2024

Business Insider Bangladesh

Govt takes power to adjust fuel, electricity prices directly

BI Report || BusinessInsider

Published: 20:44, 1 December 2022   Update: 20:58, 1 December 2022
Govt takes power to adjust fuel, electricity prices directly

Representational collected image

The government has amended an ordinance that allows it to adjust fuel and electricity prices under special circumstances.

The “Bangladesh Energy Regulatory Commission (Amendment), Ordinance, 2022” has been published in the form of a gazette on Thursday. As there is no ongoing parliament session, President Abdul Hamid issued it in the form of an ordinance.

The amendment allows the government to adjust fuel and electricity prices under "special circumstances", bypassing the regulator Bangladesh Energy Regulatory Commission (BERC).

Until now, BERC used to fix the prices of electricity and gas through a 90-day public hearing. Now such hearings will not be needed to adjust the price — the government can do it directly.

According to the amendment to the act, “In special cases, the government may, by notification, determine, re-determine or adjust the production, energy transmission, storage, marketing, supply, distribution and consumer tariffs to ensure uninterrupted supply of energy in the public interest according to the demand of agriculture, industry, fertiliser, trade and commerce and households."

Earlier on November 28, the draft of the ordinance was approved by the cabinet.

Officials for the amendment argued that hearing was time-consuming, affecting the country’s economy.

Besides, the government is also planning to allow the import of energy products by private entrepreneurs.