Three newly installed gas-fired power plants have incurred Tk 3,374 crore in capacity payments annually despite remaining largely idle due to inadequate gas supply.
The issue was disclosed at a meeting held on Sunday at Biddut Bhaban, attended by senior officials of the Bangladesh Power Development Board (BPDB).
“The capacity charges of three new power plants have increased overall electricity costs by an additional Tk 3,374 crore,” the BPDB chairman told Just Energy News. “Notably, several of these plants did not receive gas supply as planned.”
He said most gas-based power plants are now operating under rationing because of severe gas shortages, which has sharply increased government subsidies to the power sector.
The plants affected by the gas crisis are the 584MW Meghnaghat Unique Power Plant, the 718MW Meghnaghat (JERA) Power Plant, and the 583MW Summit Power Plant.
According to BPDB officials, Petrobangla committed to supply an average of 1,040 million cubic feet of gas per day between January and November 2025. However, actual supply averaged around 959 million cubic feet per day, leaving a daily shortfall of about 81 million cubic feet and forcing rationing at gas-based power stations.
This shortfall compelled power plants to rely more heavily on imported furnace oil and diesel, pushing up power generation costs by Tk 8,372.88 crore, another BPDB official said.
Meanwhile, BPDB is burdened with outstanding dues amounting to Tk 37,070 crore owed to public and private entities. Of this, Independent Power Producers (IPPs) account for the largest share, with unpaid bills totaling Tk 21,303 crore. Gas bills owed to Petrobangla stand at Tk 11,025 crore.
Officials said the interim government has been unable to significantly reduce arrears due to several factors, including unpaid subsidies from the Ministry of Finance to cover losses incurred from electricity purchases from two large IPPs. The unpaid subsidy amounts to about Tk 4,000 crore, and the meeting decided to raise the issue formally with the finance ministry.
Despite the overall arrears, officials noted some improvement compared to the previous government. Gas bills owed to Petrobangla have fallen from Tk 17,227 crore to Tk 11,025 crore, while dues to government-owned power plants declined from Tk 5,675 crore to Tk 3,671 crore. Outstanding wheeling charges to the Power Grid Company of Bangladesh (PGCB) dropped from Tk 478 crore to Tk 186 crore.
From August 5, 2024, to December 11 this year, BPDB paid Tk 135,095 crore for electricity purchases and other bills. However, reduced gas supply has increased dependence on coal- and oil-fired plants, adding Tk 4,372 crore in extra costs. Rising furnace oil prices, higher dollar exchange rates and other factors have further compounded the arrears.
Officials said electricity demand is growing by around 7 percent annually, while subsidies have failed to keep pace. In the last fiscal year, BPDB received Tk 38,000 crore in subsidies against losses of Tk 55,000 crore, largely due to buying electricity at higher prices and selling it at lower regulated tariffs.
Over the fiscal years 2022–23, 2023–24 and 2024–25, BPDB incurred losses of Tk 36,828 crore beyond subsidies—an imbalance officials say has become impossible to bridge.
BPDB data show the average cost of electricity generation and purchase is Tk 11.83 per unit, rising to Tk 12.35 per unit by the time it reaches distribution companies. This leaves a per-unit gap of Tk 6.63, resulting in a net loss of Tk 5.72 per unit.
Despite the challenges, BPDB said it saved Tk 898 crore over the past 18 months through cost-cutting measures, including Tk 348 crore saved by reducing the surcharge on furnace oil imports from 9 percent to 5 percent, and Tk 244 crore gained as discounts after settling Adani Power’s bills in lump sums.