The Power Division will seek an extension to submit electricity tariff approvals for eight power plants, including the 1,320MW Rampal coal-fired facility, to the Advisory Committee on Public Purchase.
The request comes after the Finance Division withheld subsidies for the plants due to pending power purchase agreement (PPA) approvals. The Finance Division had earlier instructed the Power Division to complete the process by July 2025.
In a recent letter to the Finance Ministry, the Power Division said it is reviewing tariffs for Independent Power Producers (IPPs) and Rental Power Plants (RPPs) to reduce generation costs.
The move follows recommendations from the International Monetary Fund (IMF), which during its December 2024 review mission, advised capping operation and maintenance (O&M) expenses, return on equity (RoE), and heat rate for privately owned plants. The IMF also suggested raising consumer power tariffs if cost-cutting measures fail.
In response, the Power Division has asked joint-venture and publicly owned plants to cut the national RoE from 12% to 6% and to curb other cost components to limit tariff hikes. Officials say the goal is to prevent sharp increases in electricity prices, maintain affordability, and ensure supply reliability.
Once implemented, the revised tariff calculation method will guide future contracts. The Power Division has also sought the release of subsidies to keep power supply uninterrupted.
Earlier, Just Energy News reported on June 19, 2025, that “Nine power plants, including Rampal, are running without tariff approval.” Following the report, the power and energy adviser ordered an investigation.
In a June 17, 2025 letter, the Finance Division said that while Tk 3,696 crore in subsidies had been released, Tk 5,056.89 crore earmarked for the nine non-compliant plants remained frozen.
The eight plants still without PPA approval are: 1,320MW Rampal Power Plant (Bangladesh-India JV), 1,320MW Patuakhali Power Plant (RPCL-Norinco JV), 210MW Mymensingh Power Plant, 52.194MW Kodda Power Plant, 25.50MW Rowzan Power Plant, 105MW Gazipur Power Plant, 163MW Mirsharai Power Plant, and 150MW Kodda Power Plant.
The 68MW Sirajganj Power Plant was dropped from the list after receiving Cabinet Committee approval.
“We are reviewing the tariffs of these power plants. Once the review is complete, the Power Division will submit the PPAs for approval,” a senior official said.