IMF team asks BERC about energy tariff model
The visiting team of the International Monetary Fund (IMF) asked the Bangladesh Energy Regulatory Commission (BERC) about its model of determining bulk and retail tariff gas and electricity prices in the country.
The four-member team, while meeting the regulatory commission, also wanted to know how often it revised or adjusted tariff in a certain year and whether the commission has the freedom to set prices independently, said a source at the BERC.
The source also said the IMF team inquired about the energy regulator's role in expediting gas exploration in the country.
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Asked, Md Kamruzzaman, member (Petroleum) of BERC, however, said, "They wanted to know how we function and collect some information about us. They did not leave any opinion about us in the meeting."
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Regarding the tariff setting model and adjustment, Md Kamruzzaman said, "We have shared the detailed methodology and BERC Act on price adjustment."
Till 2020, gas and electricity tariff adjustment more than once a fiscal year was not allowed in the BERC Act, but it was later amended to remove this provision.
The IMF team's visit comes as Bangladesh recently asked for a $4.5 billion loan from the money lender.
In view of this, the IMF has focused on reforms in various economic sectors and utilities – particularly, a reduction in subsidies.
In the last few days, IMF representatives already sat with the power division, power development board, Energy and Mineral Resource Division, Petrobangla and Bangladesh Petroleum Corporation to collect data about these organisations.
