Dhaka, Bangladesh (BBN) – The apparel makers have expressed deep concern over the recent power tariff hike in Bangladesh.
“The 6.96 percent increase in power tariff will result in the reduction of competitiveness of the export-oriented industry in the global market,” the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said in a statement on Sunday.
Earlier on Thursday, the government raised the power tariff by 6.96 percent on average with effect from the billing month of March.
The commercial user will have to pay BDT 9.58 per unit instead of BDT 9.0 in the flat rate. They will pay BDT 8.16 during the off-peak hours and BDT 11.58 during the peak hours.
Factors such as the increase in the RMG production cost by 13 percent over the recent past and the rise in the value of the Bangladesh Taka (BDT) by 8.0 percent against the US dollar have already constricted the export profit, the BGMEA explained.
“The RMG sector is also under a tremendous pressure, both at the national and the international levels, to invest in the remediation and retrofitting of the factory buildings, particularly after the tragic incidents of Tazreen fire and Rana Plaza collapse,” it noted.
The BGMEA urged the government to keep the power prices for the RMG sector unchanged to ensure that the sector remains competitive in the world market.
BBN/SSR/AD-16Mar14-9:12 pm (BST)