Photo: Messenger
Many Independent Power Producers (IPPs) are unable to supply electricity according to the government's demand due to the Power Development Board's (PDB) inability to pay bills on time and the dollar shortage.
Additionally, the Bangladesh Independent Power Producers Association (BIPPA) has recently written to State Minister for Power Nasrul Hamid, requesting that penalties not be imposed.
In a letter dated June 10, BIPPA President Faisal Khan mentioned that on April 28, furnace oil-fired plants were instructed to operate at a 50 percent plant factor (half of their capacity). In compliance, the private plants supply electricity in line with the country's demand. However, the issue of monthly bill payment within 30 days remains unresolved, leading to a financial crisis for the power plants. There is also an ongoing dollar crisis, which has made local banks reluctant to open Letters of Credit (LCs) for importing furnace oil.
He further stated that the delay in opening LCs is hampering fuel imports for many plants, affecting their ability to supply power as per PDB's demand (outage calculation). In this context, he requested that the power plants should not be fined due to outage calculation until the outstanding bills and furnace oil import issues are resolved.
Previously, BIPPA's application mentioned that PDB temporarily suspended the access outage penalty for furnace oil-fired plants from July to December of last year. In April, PDB extended this deadline until the end of June.
BIPPA President Faisal Khan told the Daily Messenger, "The bill has to be paid on time as per the contract to avoid fines. But they have about four months of bills left in PDB. This is hindering the import of furnace oil. About Tk 40,000 crores of bills for various power plants are outstanding. Out of this, the arrears of the private plants are about Tk 30,000 crores."
According to stakeholders, private sector involvement in the power sector has increased over the past decade, with half of the country's power generation capacity now in the hands of private entrepreneurs.
Energy expert Prof. Shamsul Alam said, "The pockets of private power plant owners have been made heavy with various facilities." He further mentioned that the government has paid Tk 100,000 crore in capacity charges without generating electricity, and rental and quick rental plants have been extended repeatedly. Despite this, businessmen are still seeking opportunities. If the demands of the traders are accepted, the pressure will fall on the consumers.
In addition, they have been receiving various facilities from the government, including tax exemptions, fuel at subsidized prices, project land, assistance in obtaining loans, and repeated extensions of the contract period. However, there are allegations against power traders of securing more benefits from the government through influence.
Messenger/Disha
