The Energy and Mineral Resources Division is following the path of the Awami League government's bureaucracy. It has continued its efforts to keep the power to determine the price of fuel oil in its own hands through various tricks.
It has adopted a strategy of delaying the implementation of the interim government's instructions. Even after 6 months, the fuel oil regulations have been left hanging, just as the Awami League government had left them hanging. This has raised questions about the government's role.
The Bangladesh Energy Regulatory Commission (BERC) Act has entrusted the institution with the authority to determine the prices of all types of fuel. Section 34 (3) states that the BERC shall formulate regulations. However, there is a condition that until the regulations are formulated, the government can determine them by notification. The price of fuel oil has been determined by executive order after suspending regulations in various ways for a long time.
Many have expressed disappointment that the interim government is also following the same path. Former member of the Bangladesh Energy Regulatory Commission (BERC), Maqbul E-Elah
Chowdhury, told Barta24.com that it is very surprising why the regulations have not been approved even after 6 months.
The biggest reform will be achieved if BERC is implemented. He commented that many corruption and irregularities will automatically stop if BERC is strong.
In 2003, BERC was formed as a neutral and quasi-judicial institution through the Energy Regulatory Commission Act. BERC officially started its journey in 2009. So far, 13 regulations have been formulated. Another 12 regulations have been pending by the ministry for more than a decade.
Although the law gives the authority to determine the prices of all types of energy, BERC has been determining the prices of only gas and electricity due to the pending regulations. In 2023, the law was suddenly amended to include a provision for price adjustment (up/down) in the executive order. Since then, the Regulatory Commission has been practically unemployed as the prices of gas and electricity have been determined by the executive order.
The interim government announced in the first week that the prices of electricity and gas will no longer be determined by the executive order. Accordingly, the power was returned to the hands of BERC by amending the law. But the issue of fuel oil has been left in the hands of the previous government. As before, since the petroleum regulations were not approved, fuel oil prices are being determined through a notification by raising smoke. Last month, the Energy and Mineral Resources Division also adjusted the prices of diesel, petrol, and octane.
CAB's Energy Adviser Dr. M Shamsul Alam told Barta24.com, we want to see BERC strong and effective in the future. So far, the government's position on the BERC issue is not very clear to us. They are also determining fuel oil prices following the path of the previous government. They are speaking in the tone of the previous government. We are monitoring the situation, if necessary; we have obtained an order to announce the price of LPG (by filing a writ). The CAB will not hesitate to follow that path on the fuel oil issue.
BERC Chairman Jalal Ahmed told Barta24.com, the regulations have been submitted to the ministry even before I joined. I am insisting on approving them after joining. However, the issue of combining the three separate regulations (distribution, transmission and retail) for fuel oil has come to the fore. We have sent the three together. Communication with the ministry is ongoing.
In response to a question, the BERC Chairman said, some have raised the question of whether the consumer will be able to bear the price if the price suddenly increases. I have informed the energy adviser that even if BERC sets the price, there is an opportunity to provide subsidies if necessary according to the BERC Act. I see no reason to be concerned about this issue.
Former BERC member (administration) Mohammad Abu Faruk told Barta24.com, if BERC is implemented, half of the energy sector will be reformed. If it is given full powers according to the law, a lot of corruption will be stopped. In many countries, including India, to make an agreement, the approval of the Regulatory Commission is required. If it can be done in our country too, then they (BERC) will see whether it (the project) is necessary at all, and whether the price is reasonable or not? If there is domestic interest, they will approve it. It is possible to save thousands of crores of taka at the macro level.
As BERC finalized the prices through public hearings, various inconsistencies of the utilities used to come to the fore. This created a kind of pressure on them, which was becoming a culture day by day. The Awami League government strangled that process. The interim government (August 27) repealed the law on determining electricity and gas prices through an executive order and published a gazette. Through this, BERC has regained the sole power to determine electricity and gas prices at the consumer level. But due to the lack of regulations, fuel oil prices are still being determined by executive orders. Due to this, many have questioned the goodwill of the interim government.
Energy experts said that BPC imports oil itself and markets it through companies and dealers. If they decide the price, it is not possible to protect the interests of consumers. BPC has emerged as a dual entity. Either they will regulate or they will market. What is happening now is completely against the law.
Mohammad Saiful Islam, Secretary of the Energy and Mineral Resources Division told Barta24.com, we are working on the regulations, we hope to be able to do it soon.