BPDB’s loss likely to cross record Tk 54,000 crore

Staff Reporter :
The loss of Bangladesh Power Development Board (BPDB) is likely to cross Tk 54,000 crore in the ongoing fiscal year of 2022-2023 because of increased gas price as well as purchasing electricity from rental power plants, quick rental power plants, Independent Power Producers (IPP) and cross-border imports. In last financial year, BPDB’s loss was Tk 29,915 crore.
According to Bangladesh Power Development Board’s own latest estimates, the initial financial loss was supposed to cross Tk 48,000 crore in the 2022-23. After several hike in bulk power tariff, the loss was calculated to come down by about Tk 4000 to Tk 44,000 crore.
Due to the gas price hike from February 01, the loss will go up by 10,000 crore at the end of this current year and the figure of total loss will become Tk 54,000 crore, as per latest calculation based on an audited report.
As per the gazette notification in January issued by Energy and Mineral Resources Division, the public and private power plants including the IPP and rental power plants buy gas at Tk 14 per unit (each cubic meter) instead of the previous price of Tk 5.02. The rise is 179 percent.
The captive power plants, small power plants and commercial power plants pay Tk 30 per unit instead of the previous price of Tk 16 which is an 88 percent rise.
It means after the current enhancement in gas price from February first, the loss in the space of one fiscal will go up by over Tk 24,000 crore, an almost 80 percent jump.
However, buying electricity at a higher price and selling it at a lower price, the company has incurred a loss of Tk 60,182.49 crore in the last five years. As a result, BPDB is sinking under the burden of subsidies and losses.
According to the BPDB report, the average cost of power generation last financial year was Tk 8.86 per unit. But this financial year it will increase to Tk 10.98. The next financial year it will increase to Tk 11.10. After several increase of bulk rate of electricity it stands at Tk 6.70 per unit. Therefore, BPDB’s loss per unit will remain Tk 5.40 per unit.
Senior official of BPDB said to the journalists wishing not to be named that, BPDB’s loss is not something new but in recent years its increases significantly. Ten years ago, total losses in a fiscal year now become a single month’s loss of BPDB.
While bulk electricity prices were hiked twice in December and February, the unusual rise in gas prices pushed up spending at a higher rate. Again, devaluation of local currency against USD further exacerbated the income shortage of BPDB, he added.