TDS Desk:

Ordinance issued revoking govt’s ability to raise power, energy prices bypassing BERC

An ordinance has been issued revoking the provision for increasing the prices of oil, gas, and electricity by executive order.

On Tuesday, August 27, the President issued the “Bangladesh Energy Regulatory Commission (Amendment) Ordinance, 2024.”

Earlier, on August 22, the draft ordinance was approved in the interim government’s advisory council meeting.

By amending the “Bangladesh Energy Regulatory Commission Act, 2003,” the ordinance has abolished Section 34(k) which allowed for increasing the prices of oil, gas, and electricity by executive order.

On December 1, 2022, in a special case, the President issued the “Bangladesh Energy Regulatory Commission (Amendment) Ordinance, 2022,” giving the government, not the Bangladesh Energy Regulatory Commission (BERC), the power to determine, readjust, and coordinate the prices of oil, electricity, and gas at the consumer level.

The ordinance included Section 34(k) under the heading of government power to determine, readjust, or coordinate tariffs. This section stated, “Notwithstanding anything in the other provisions of this law, in special cases, the government, by notification in the official gazette, for the purpose of subsidy adjustment, in the public interest, to ensure uninterrupted energy supply based on demand for agriculture, industry, fertilizers, trade, and household needs, may take prompt effective measures for the production increase, transmission, transportation, and marketing of energy, and may determine, readjust, or coordinate tariffs for electricity production, energy transmission, storage, marketing, supply, distribution, and at the consumer level.”

Later, when the parliament convenes, the ordinance will become law. The ministry had been repeatedly increasing the prices of gas, electricity, and oil, which caused dissatisfaction among consumers.

On August 22, the advisory council meeting gave final approval for issuing the ordinance to repeal Section 34(k) of the “Bangladesh Energy Regulatory Commission Act, 2003,” with the aim of ensuring greater public involvement, transparency, accountability, governance, public expectations, and consumer interests in tariff/price determination of electricity production, gas resources, and petroleum products through public hearings in the current context.

On August 5, the day of the ‘March to Dhaka’ program called by the anti-discrimination student movement, Sheikh Hasina resigned from the position of Prime Minister and moved to India. On the same day, the cabinet was dissolved.

Subsequently, on August 8, the interim government was sworn in, with Dr. Muhammad Yunus, the Nobel Peace Prize-winning economist, taking on the role of chief advisor.

Muhammad Fouzul Kabir Khan was appointed as the advisor on electricity, energy, and mineral resources in the interim government. On Sunday, August 18, he announced on his first day at the office that the prices of gas, electricity, and oil would not be increased by executive order.

Removal of Sheikh Hasina’s name from Youth Development Institute

The name of former Prime Minister Sheikh Hasina has been removed from the ‘Sheikh Hasina National Youth Development Institute.’ For this purpose, the “Sheikh Hasina National Youth Development Institute (Amendment) Ordinance, 2024” has been issued. On the same day, the draft ordinance was approved in the advisory council meeting.

According to the ordinance, the new name is “Bangladesh National Youth Development Institute.”