Bangladesh will review the tariffs of 91 private-sector power plants under the Quick Enhancement of Electricity and Energy Supply Act.
The Power Division issued an office order in this regard today, which was confirmed by Power and Energy Adviser Muhammad Fouzul Kabir Khan to Just Energy News on Tuesday. He added, “The committee’s responsibilities include reviewing the Electricity and Energy Supply Special Act, 2010 (amended in 2021), identifying discrepancies, and making recommendations.”
The adviser also mentioned that the committee will renegotiate the tariff structure of HFO-based power plants and provide recommandations.
He clarified that the expiration of deals will not affect the review process.
“We will review the Power Purchase Agreement (PPAs) signed during the Awami League government’s tenure from 2010 to August 2024 under the special power act,” an official from the Power Division said.
The government has formed a committee to address critical issues in the power sector and ensure the effective implementation of legislative frameworks, the official added.
The committee is led by Dr. Md. Kamrul Ahsan, a Distinguished Professor at Green University of Bangladesh, who serves as the chair.
Toha Mohammad, a financial modeling expert and consultant for the Power Sector Reform Committee, is also a member. Another member, Md. Manzur Alam, is the Deputy Attorney General at the Bangladesh Supreme Court.
Representing the Bangladesh Power Development Board (BPDB) are Member (Finance) Anjana Khan Mojlish and Director (Purchasing) Md. Nannu Mia.
Additionally, Mohammad Solaiman, Deputy Secretary (Development-1) of the Power Division, serves as the Member Secretary of the committee.
The committee’s duties include reviewing the Electricity and Energy Supply Special Act, 2010 (amended in 2021), identifying discrepancies, and making recommendations for rectification. They will also assess challenges associated with HFO-based power plants and propose solutions under the provisions of the same law.
Furthermore, the committee has the authority to co-opt additional members if necessary to effectively achieve its objectives.
“We are ready to renegotiate the power tariff, but the government must ensure a level playing field first,” said BIPPA President David Hasanat.
As the president of the Bangladesh Independent Power Producers Association (BIPPA), he has requested the Power Division to analyze which plants’ electricity selling prices are fair and which are not.
He also urged the government to clear overdue receivables from private power producers to ensure a smooth supply of electricity during the hot summer months starting in March.
