Over half of the reforms in the power and energy sector could be achieved if the Bangladesh Energy Regulatory Commission (BERC) is strengthened.
However, sector stakeholders remain dissatisfied with the current pace of its fortification.
Despite three months having passed under the interim government’s tenure, there has been minimal visible progress on BERC’s foundational issues.
On his first day as the Power, Energy, and Mineral Resources Adviser Fouzul Kabir Khan raised significant hopes by suspending special provision laws and cancelling executive orders that determined power and gas prices, but the initial optimism has gradually faded.
Immediately upon assuming office, the adviser declared that no further contracts would be signed under the controversial indemnity law and that all work would proceed through open tenders.
True to his word, he resisted pressure from influential groups and rejected a proposal from American company Excelerate, exemplifying his resolve.
Another landmark announcement on his first day was the strengthening of BERC, stating that the regulatory body—not the government through executive orders—would determine power and gas prices.
This move was widely applauded by consumer rights organisations, including CAB.
Within days, the clause allowing price adjustments via executive orders was abolished on 27 August, instilling hope that the previously weakened BERC would become dynamic.
Yet, even after three months, key obstacles to its empowerment persist.
Formed in 2003 under the Energy Regulatory Commission Act as a semi-judicial and impartial entity, BERC began its actual journey in 2009 to ensure accountability among gas and electricity companies and safeguard consumer rights.
To date, it has drafted 13 regulations, of which 12 have languished in approval limbo for over a decade.
Although BERC holds statutory authority to determine the prices of all types of energy, its functions have been limited to setting gas and electricity prices due to the delay in finalising regulations.
Section 34(3) of the Act stipulates that BERC shall formulate regulations; however, the government retains the authority to issue notifications until these regulations are established.
Petroleum pricing has been controlled through notifications due to the absence of approved petroleum regulations.
In 2023, a sudden amendment to the law introduced executive orders for price adjustments, rendering the semi-judicial body practically redundant.
The interim government’s initiatives have reinvigorated hopes among stakeholders.
Many anticipated the approval of pending regulations.
Although initiatives were undertaken by the Energy and Mineral Resources Division, substantial progress remains elusive even after three months.
BERC Chairman Jalal Ahmed said, "The regulations were submitted to the Ministry before I assumed office. Since my appointment, I have been pushing for their approval. The current discussion is on combining the three separate petroleum regulations for distribution, transmission, and retail into a single set. We have submitted the consolidated regulations and hope for approval soon."
In addition to regulatory issues, there is a severe manpower shortage. In 2017, a new staffing structure was proposed, increasing the existing 81 positions approved in 2014 by an additional 200.
Ministry of Public Administration later reduced this to 118 posts. In 2019, the Finance Division conditionally approved recruitment in two phases.
However, two more years passed, and in March 2021, the Administrative Development Committee approved 65 revenue posts, bringing the total sanctioned posts to 146.
BERC prepared a distribution of responsibilities for these 146 posts.
According to Public Administration Ministry directives, the creation of Grade-3 and above posts requires the Prime Minister’s approval.
Four such posts were forwarded to the Prime Minister's Office on 5 April 2021, but were returned with a request for justification, stalling the manpower restructuring process.
Following recent political changes, BERC resubmitted the proposal to the chief adviser for approval on 18 July, but progress has been stagnant, deepening frustrations.
In a significant development following the fall of the Awami League government, chairman Nurul Amin and other members resigned amidst pressure from employees at all levels.
While the interim government has appointed a new Chairman, four-member positions remain vacant, severely hampering BERC’s functionality.
Mohammad Abu Faruq, former BERC member (administration), said, "Strengthening BERC would fulfil half of the energy sector reforms. Empowering it fully as per the law could prevent significant corruption. In India and other countries, regulatory approval is necessary for contracts, ensuring need and cost justification. If we adopt similar measures, substantial savings could be realised."
Another former member, Mokbul-E-Elahi Chowdhury, observed, "Making BERC effective would lead to major reforms and automatically curb corruption. It is puzzling why the regulations have not been approved even after three months."
CAB’s energy advisor, Dr M Shamsul Alam, expressed a desire to see BERC become a strong and effective entity.
"So far, the government’s stance on BERC is unclear to us. They appear to follow the previous government’s approach in setting fuel prices. If necessary, we will pursue court orders, as we did with LPG pricing," he added.
Previously, LPG companies set their own prices until CAB’s court intervention made BERC responsible for regulating them.
Consumers note an unhealthy profit competition among distribution companies, with some employees receiving up to Tk18 lakh in profit bonuses annually.
BERC's public hearings provided a platform for limited accountability, curbing corruption and wastefulness by exposing irregularities.
Unfortunately, the lack of attention to strengthening BERC undermines such oversight.
