Multiple regulators resulting in increased tariffs in energy sector

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Multiple regulators found in the energy sector are actually proving costly for both operators and consumers, building a big effect on the tariff especially found in the LPG and CNG businesses.

According to sector insiders in addition to consumer rights groupings, consumers have to bear the brunt of huge amounts paid in costs annually by the business operators.

According to a presentation made by the president of LPG Operators of Bangladesh (LOAB) Azam J Chowdhury in a recently available seminar, any bulk liquefied petroleum gas (LPG) business operator must pay annually about Tk 13.5 million (1.35 crore) in total to 13 regulatory bodies to obtain licenses or even to renew them for business.

The licensing bodies along with their fees are Bangladesh Energy Regulatory Commission (BERC) Tk 35,65,000, Bangladesh Petroleum Corporation (BPC) (proposed) Tk 25,00,000, Bangladesh Investment Production Authority (BIDA) Tk 40,000, Department of Environment (DoE) Tk 205,000, Bangladesh Benchmarks  and  Testing Institution (BSTI) Tk 12,04,158, Department of Explosives Tk 116,000, Bangladesh Fire Assistance  and  Civil Defense (BFSCD) Tk 120,000, Bangladesh Inland Normal water Transport Authority (BIWTA) Tk 25,00,000, and city corporation/local government body Tk 93,760.

The other bodies and their charges include Department of Inspection of Factories and  Establishment (DIFE) Tk 320,000, Office of the Chief Controller of Imports  and  Exports (CCI and E) Tk 61,000, Dhaka Chamber of Commerce  and  Industry (DCCI) Tk 10,350 and Registrar of Joint Inventory Companies  and  Firms (RJSC and F) Tk 27,60,000 (assuming an authorised capital Tk 3 billion or 300 crore).

During the public hearing lately held simply by the BERC, officials of large six private LPG firms also raised the problems and demanded an individual regulatory authority to screen their business and introduction of a one end service (OSS) in the prime regulator's workplace.

Hasin Pervez, a head of the Bangladesh CNG Filling Stations and Conversion Workshop Owners Association, brought an identical allegation saying that they must pay service fees to 22 bodies to have licenses for LPG and CNG organization.

"The most bothersome component, in this case, is that there is absolutely no serial to maintain in seeking licenses or perhaps permission from among the bodies like deputy commissioner (DC) office, BPC, or perhaps any different authority," he said.

Once anybody pertains to DC office, its officials asked the applicant to take on licenses from other companies first and then apply, he added.

Hasin Pervez noted that whenever applications are filed to different authorities, they direct to get the DC Office's authorization 1st and apply to them.

Supporting the allegation, Buyers Association of Bangladesh (CAB) advisor professor Shamsul Alam said the consumer rights body would as well prefer a single regulator in the energy sector.

"We're of the same judgment that multiple regulatory bodies sole create complications running a business and enhance cost which eventually impacts on the energy tariff and lastly consumers have to pay the purchase price," he said.

Echoing their views, ex - person in the BERC, Mizanur Rahman, said there must be sole and prime regulatory authority with an individual stop service conveniences which will coordinate with other authorities agencies.

He said BERC currently simplified a number of the processes in applying for a license for energy business by lessening the number of required obligatory documents.

"But still there is scope for undertaking much more to further ease doing business in the strength sector," he told the news headlines agency.

He also suggested fixing the service fees in a rational method so that it could not impact the buyers. 
Source: https://en.prothomalo.com

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