Power price hike to hid hard Bangladesh industries, exports: businesses

Image: Bizbangladesh.net
Country’s business leaders on Thursday expressed their dissatisfaction over the increase in the electricity price, saying that the tariff hike would adversely affect the country’s manufacturing sector.

The Bangladesh Energy Regulatory Commission on Thursday raised the common retail prices of electricity by 5.3 per cent and the brand new prices would enter into effect from March 1.

Businesses feared that the electricity price hike would push up the price tag on production and therefore the competitiveness of Bangladeshi products in the global  market would decrease.

They also apprehended that lots of industries might become sick with the growing cost to do business rendering a good number of people jobless.

Sheikh Fazle Fahim, president of the Federation of Bangladesh Chambers of Commerce and Industries, said that the purchase price hike was ‘regrettable’.  

He said that the production cost would rise as a result of price hike of electricity.

‘For the sake of national interest, any increase in power price, if needed, ought to be spread over time to truly have a nominal effect on the price of conducting business,’ Fahim viewed.

‘I don’t know how the country’s industry would be viable. Most industries have already been facing difficulty due to the high cost of bank loans, increased workers’ wages and gas price hike. Now the power price will put additional burden,’ Bangladesh Chamber of Industries president Anwar-Ul Alam Chowdhury Parvez told MODERN on Thursday.

He said that Bangladeshi products would lose their competitiveness on earth market as the expense of production would rise due to the increased utility prices.

Parvez said that the high price of electricity would raise the production cost and several professional units might turn sick forcing large numbers of personnel out of job.

Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association said that the electricity price hike would not be beneficial for the industry.

‘Since our business costs have gone up by almost 29.40 % within the last four years and since prices have steadily gone down, there’s no way we are able to afford any increase of any sort,’ she said.

Bangladesh Textile Mills Association president Mohammad Ali Khokon said that it would be problematic for the country’s primary textile sector to bear the excess cost of electricity.

He complained that the government increased the energy price due to loss however the excuse had not been acceptable as people weren't responsible for the loss.

‘Why should you improve the production of electricity without upgrading the distribution and transmission systems? Why should persons purchase the indegent distribution, transmission and grid lines?’ Khokon questioned. 

The production of electricity could not be successful without upgrading  the distribution, transmission and grid lines, he emphasised.
Source: https://www.newagebd.net

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