Bangladesh Energy Regulatory Commission (BERC) is working on the pricing formula of jet fuel. Chairman Jalal Ahmed said that if any party brings an application, the price will be determined through public hearing.
BERC Chairman also told Barta24.com that Bangladesh Petroleum Corporation (BPC) has fixed the rates in coordination with the Division of Energy and Mineral Resources. Two officials of that organization were called and discussed about their formula. Our officers will also go to BPC to look into the matter.
The price of jet fuel, which is known as aircraft fuel, has been fixed through the notification of the executive department. An order by the Division of Energy and Mineral Resources on September 18 asked BERC to fix the rates. The order said that BERC will fix the price of jet fuel from October, since then the matter has come to the fore.
Fawzul Kabir Khan, the Adviser on power, energy and mineral resources of the interim government, said on the first day of office, that the price of electricity and gas will not be fixed by executive order. He has kept that word, having already canceled the price adjustment clause in the executive order. But the Energy Regulatory Commission is quite uncomfortable due to lack of regulations.
BERC was established as a neutral and quasi-judicial autonomous body through the Energy Regulatory Commission Act in 2003. BERC was originally formed in 2009 to ensure accountability and consumer rights of gas and electricity distribution companies. So far 13 regulations have been formulated. Another 12 regulations have been suspended by the ministry for more than a century.
BERC has been fixing the prices of gas and electricity only due to pending regulations, although the law has given it the authority to fix the prices of all types of fuel. In 2023, the law was suddenly amended to include provisions for price adjustments (lower/higher) in executive orders. Since then, the Regulatory Commission has become virtually jobless as gas and electricity prices are fixed by executive orders.
As BERC finalizes prices through public hearings, various inconsistencies of utilities 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. However, the interim government (August 27) issued a gazette repealing the Electricity and Gas Price Fixing Act by executive order. Through this, BERC has regained the sole power to fix electricity and gas prices at the consumer level.
However, due to the non-approval of petroleum regulations, the price of fuel oil is being determined through a notification. The Department of Energy and Mineral Resources adjusted the price of diesel, petrol and octane last month as well. The Act states that BERC will determine the price of all types of energy. Section 34(3) states that BERC shall make regulations. Provided that the Government may, by notification, prescribe until the regulations are made. BERC could not do anything about fuel oil as regulations were pending.
BERC Chairman Jalal Ahmed told Barta24.com that the regulations have been submitted to the ministry even before I joined. I insisted on approving these after joining. However, the issue of merging the three separate regulations (distribution, transmission and retail sale) of fuel oil has come to the fore. We sent 3 together. Hope to get approval soon.
Barrister Khalilur Rahman, Secretary of BERC, told Barta24.com that legally there is no obstacle in fixing the price of jet fuel by BERC. And since the executive department has said, then there is no more talk.
There will be no crisis if there are no regulations. In response to such a question, BERC secretary said, the law says that if there is a precedent, we can do it. BERC is fixing gas prices even before the rules are approved, after the rules are approved. Again, although the rules of LPG are not final, the price of LPG is being announced from April 2021 by the order of the court. Every month the price is announced in coordination with the international market.
The issue of LPG rates came up through a writ petition by CAB. BERC was made a respondent along with the ministry in the aggrieved CAB writ. In response to the court's complaint, BERC then said it could not do so because there were no regulations. BERC was accused of contempt of court by not accepting the reply. BERC was then forced to start fixing the price of LPG.
Cab senior vice president and energy advisor Dr. Shamsul Alam told Barta24.com that BERC can set jet fuel prices without regulations. They can do so in light of the draft regulations they prepared in 2012. There will be a reminder of the rules mentioned. They have not approved the LPG regulations, since there is no problem in announcing the price of LPG, there will be no problem here either.