The natural gas connection to United Group’s captive power plant located inside the Dhaka Export Processing Zone (DEPZ) has been disconnected over unpaid dues amounting to Tk 478 crore.
Shahnewaz Parvez, Managing Director of Titas Gas Transmission and Distribution Company, confirmed the disconnection, stating that despite repeated notices since 2018, the dues remained unpaid. The disconnection was carried out at 2:30-3pm on Monday, April 28.
According to sources at Titas Gas, United Group had once applied around 2022 to settle the dues through installments, for which a court had issued an order allowing installment payments. However, the company failed to make any payments even after the court’s directive.
Serious allegations of preferential treatment have also surfaced regarding the gas pricing for United Group’s two power plants — one at Dhaka EPZ (86 MW) and the other at Chattogram EPZ (72 MW).
Under the previous Awami League government, these plants reportedly received unprecedented political backing, allowing United Group to act with impunity and disregard regulations.
As the power plants supply electricity privately rather than selling to the national grid, the Bangladesh Energy Regulatory Commission (BERC) had fixed the gas price at Tk 31.50 per cubic meter under the captive category.
At that time, Independent Power Producers (IPPs) were charged Tk 16 per cubic meter. United Group lobbied to obtain gas at the lower IPP rate, but BERC rejected their request. Subsequent appeals to the High Court and Supreme Court were also unsuccessful.
Nevertheless, overriding all legal proceedings, the government allegedly approved their request through an executive order. This prompted back-and-forth communications between the Power Division and BERC.
Then-BERC Chairman Abdul Jalil had made it clear that under the law, United Group’s plants could not be categorized as IPPs and must pay gas bills at the captive rate. Despite facing pressure from the Power Division, BERC upheld its decision.