Assignment name: Tariff Reform Study and Preparation of Electricity Tariff for Consumers of Palli Bidyut Samitites (PBSs) Under Bangladesh Rural Electrification Board (BREB)
Location within country: All 64 Districts Duration of assignment: 6 months
Name of Client: Bangladesh Rural Electrification Board / World Bank
Name of associated Consultants, if any: ECA, UK
Name of senior professional staff of your consulting firm/organization involved and designation and/or functions performed:
- Roomee Tareque Moudud – Financial Analyst
- Masud Hossain – Accountant
- Mahtab Ahmed – Assistant Accountant
- Avirup Sarkar – Assistant Financial Analyst & Accountant
Description of Project:
Assessment of cost of electricity service delivery, tariff study and preparation of electricity tariff for consumers of Palli Bidyut Samitites (PBSs) under Bangladesh Rural Electrification Board (BREB). The study is financially supported by the International Development Association (IDA) through a Credit to BREB.
Description of actual services provided by your staff within the assignment:
The assignment contains the following requirements:
- The Revenue Requirement determination will follow BERC regulations.
- The consultant shall review current tariff methodologies and gain an appreciation and clarify the structures and philosophy adopted.
- PBS tariffs will be calculated based on rate base, depreciation, debt servicing and return on investment. Any cross subsidies shall be incorporated in a clear and transparent manner. Best practices shall be considered.
- The tariff calculation shall be based on the premises of affordability, social impacts, and the ability of groups of consumers (especially commercial and industrial) to cross-subsidise residential consumers.
- A roadmap shall be developed for subsidy elimination over a reasonable period of time. The TOR require the preparation of an electricity tariff calculation methodology and model that:
- Computes tariffs for end users.
- Is transparent in its methodology and delivers predictable and stable tariffs.
- Complies with accepted regulatory principles.
- Guarantees recovery of the total cost and a reasonable amount of profit for the utility.
- Is easy to use.
- Provides adequate short-term and long-term financial information.