The government has approved a cut in the electricity tariff of a 225MW power plant operated by Ashuganj Power Station Company Ltd (APSCL), a move expected to save the Bangladesh Power Development Board (BPDB) about Tk30.09 crore a year.
The total saving over the remaining term of the plant’s power purchase agreement (PPA) is estimated at Tk431.79 crore, according to the government decision.
The Cabinet Committee on Government Purchase approved the proposal at a meeting chaired by Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat on Thursday.
Under the revised arrangement, the tariff will be reduced from Tk5.81 to Tk5.77 per kilowatt-hour, or unit, with the new rate taking effect retrospectively from 1 August 2025.
The revision followed a decision by the BPDB board as part of efforts to improve efficiency, transparency and accountability in the power sector.
Tk13,679 crore to be paid over remaining contract
The 225MW combined-cycle power plant was developed by APSCL with financing support from Standard Chartered Bank and began commercial operations in 2015.
APSCL has been supplying electricity from the plant to BPDB under a 25-year PPA.
According to the proposal, the agreement has 14 years, four months and nine days remaining. Over this period, BPDB is estimated to pay Tk13,679.07 crore for electricity generated by the natural gas-fired plant.
The plant’s electricity tariff has been revised several times. The latest adjustment will reduce BPDB’s procurement cost by four paisa per unit.
While the reduction is small on a per-unit basis, the volume of electricity to be purchased over the remaining contract period is expected to result in significant savings for the state-owned power utility.
The Power Division placed the proposal before the Cabinet Committee on Government Purchase, while BPDB will implement the revised tariff.