The government has approved a proposal to reduce the existing levelised tariff for electricity from the 400-MW Ashuganj combined-cycle power plant, cutting the rate by 20.29 poisha per kilowatt-hour.
Under the revised tariff, the Bangladesh Power Development Board (BPDB) will pay Tk 4.5436 per unit, down from the existing Tk 4.7465 per unit for electricity supplied by the Ashuganj Power Station Company Ltd (APSCL).
The tariff revision is expected to save BPDB around Tk 77.89 crore a year in electricity purchase costs.
The Cabinet Committee on Government Purchase approved the Power Division’s proposal at a meeting on Wednesday, chaired by Finance and Planning Minister Amir Khosru Mahmud Chowdhury at the Secretariat.
The tariff was revised following a decision of the BPDB board as part of efforts to reduce power-sector costs and improve transparency and accountability in electricity procurement.
The 400-MW plant, owned by APSCL, began commercial operation in 2022. It was built with financial support from the Asian Development Bank and the Islamic Development Bank.
Under a 25-year power purchase agreement, APSCL sells electricity generated by the plant to BPDB.
The agreement has 22 years, three months and 27 days remaining. During the remaining period, BPDB is estimated to pay about Tk 29,541.95 crore for electricity generated by the gas-fired plant.
The tariff revision will reduce BPDB’s purchase cost while APSCL, as a state-owned company, will continue to receive the revised tariff for electricity supplied under the agreement.
Any profit or dividend earned by APSCL will ultimately accrue to the government, officials said.