Home Business 118 rupees increase in cost per household due to increase in electricity prices: CPD

118 rupees increase in cost per household due to increase in electricity prices: CPD

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118 rupees increase in cost per household due to increase in electricity prices: CPD

Due to the increase in electricity prices, the cost per household will increase by an average of 9.4 percent per month, which will increase to Rs.118. This information was given in a press conference organized on Wednesday morning at the office of the private research institute Center for Policy Dialogue (CPD) in the capital on alternative measures to remove the electricity subsidy.

The CPD says simply increasing the price pressure on the public to withdraw subsidies is unreasonable. In this regard, the government should take a specific action plan including reducing the burden of capacity charges, purchasing electricity at competitive prices.

Presenting the main article at the press conference, Research Director of CPD, Khandaker Golam Moazzem, said that the higher rate of price increase in higher consumption is a positive decision. However, the cost of irrigation and industrial production in the agricultural sector will increase with the price of electricity.

According to Golam Moazzem, the large capacity charge is the main reason for the subsidy due to the creation of power generation capacity at a higher rate than the demand in the country. So it should seriously get out of capacity charge within a few years. Apart from this, the government is spending more because there is no open tender for buying electricity.

According to CPD, subsidy can be avoided only if the price increases at the rate of 6.8 percent in the next 5 years in the planned way. However, the IMF says prices should increase by 12 percent. Apart from this, it is possible to reduce the government’s cost burden in the power sector through the use of renewable energy, says CPD.



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