The interim government has placed the 2508MW of imported electricity from India among its top priorities, as the tariff rate is comparatively lower than local generation costs.“We have made major payments for the 1160MW of Indian electricity under bilateral agreements and continue regular payments for the 1348MW Adani Power import to ensure full capacity ahead of the hot summer,” Bangladesh Power Development Board (BPDB) Chairman Engr Rezaul Karim told Just Energy News on Monday.He added that the overdue payments under state-level power negotiations import have been reduced to around $400-$450 million, compared to $650 million few months back as the BPDB made regular basis payment over the months.

Additionally, Adani Power bills have significantly decreased, with BPDB paying $85 million regularly for the past few months, according to him.According to BPDB officials, the government is importing electricity at Tk 8.5 per kilowatt, compared to Tk 11-12 per unit for Adani’s electricity. However, locally produced gas-fired electricity remains the cheapest to Tk 5 per kilowatt compared to coal and imported power.BPDB will receive a one percent rebate, approximately Tk 65 crore, if payments for four separate electricity import deals are made within 30 days. Moreover, Indian company Adani has proposed a rebate of around $50 million for overdue payments settled by June 2025.The government anticipates a peak summer electricity demand of 17,260MW during Ramadan and 18,000MW in the hotter months. Of this, BPDB expects to generate 6200MW, provided that 1000mmcfd-1100mmcfd of natural gas is available. The installed capacity of gas-based power plants stands at 11,677MW.Additionally, 5100MW of coal-based electricity—out of a total 5601MW capacity—has also been prioritised. However, private power producers have requested payments to maintain operational capacity. Five units of coal-fired plants including a unit of Adani are also facing mechanical issues, affecting power generation.The generation capacity from heavy fuel oil (HFO) is 5503MW, but Independent Power Producers (IPPs) are seeking overdue payments to import fuel under their own arrangements. The government’s revised fuel import incentives have discouraged IPP sponsors from importing fuel for power generation ahead of Ramadan and summer.An official from the Power Division, speaking on condition of anonymity, confirmed that the government has deprioritised oil-based power plants to secure $6 billion for the power sector from the IMF.“We have pledged to the IMF to address nine sectors to reduce subsidies in the power sector. However, we are also working to comply while ensuring adequate electricity supply,” the official added.The government continues to navigate financial and energy challenges to balance affordability, reliability, and fiscal discipline in the power sector.

The interim government is focusing more in reducing cost in the power and energy sector instead of raining electricity price as tool for cutting growing subsidies, Energy Adviser M Fouzul Kabir Khan said on Monday.  

The cost reduction measures include raising the number of fuel suppliers and minimise charges associated with energy imports.     

“Our energy procurement cost is way high. Our average electricity price is Tk 8.9 per unit compared to more than Tk11 purchasing cost,” the adviser told a session on ‘Building Sustainable Future: Connectivity and Energy’ at a two-day dialogue, organised by the Centre for Policy Dialogue (CPD) in the capital.

As a result, the country has to provide Tk 42,000 crore subsidy on the power sector and another Tk 20,000 crore on energy. This subsidy should have been given to education and health, where actually it needed, he pointed out.  

Elaborating the government strategy to address the issue right now, he said, “What we’re trying to cut subsidies — we’re focusing on reducing cost in the power and energy sector. Our vehicle to do so is opening up the market.” “You’ve noticed we’ve not increased the electricity tariffs over the past six months, although there is a decision to increase the price in every two months,” he added.  

News Link: Govt prioritises 2508MW Indian electricity import due to lower tariff