Govt reviewing ‘unethical’ power deal

Minister says sector burdened by 12,000MW surplus capacity payments

Power tariff review aims to improve sector governance

The government has launched a review of private power purchase agreements and electricity billing practices as part of broader efforts to improve governance and ensure the long-term financial sustainability of the country’s power sector.

Speaking at a press conference at Bidyut Bhaban in the capital on Monday, State Minister for Power, Energy and Mineral Resources Anindya Islam said the sector continues to face significant financial obligations arising from decisions taken by the previous government, including capacity payments for around 12,000 megawatts (MW) of surplus power generation capacity.

He said the government is reviewing tariffs for a number of private power plants whose power purchase agreements were signed under the previous administration, describing some of the contracts as “unethical”.

At the same briefing, Power Secretary Mirana Mahrukh addressed recent public concerns and media reports over unusually high electricity bills issued in June for electricity consumed in May.

Reading from a written statement, she urged journalists to verify complaints before publication, saying internal investigations by the Power Division found that several reports were based on inaccurate information.

At the same time, she welcomed constructive investigative reporting, saying it helps the ministry identify shortcomings and take appropriate corrective measures.

Responding to concerns over billing discrepancies, Mahrukh advised consumers with questions about their electricity bills to contact the customer service centres of their respective power distribution companies.

She said arrangements have been made for meter testing, bill re-verification and the resolution of billing disputes where required.

The Power Secretary also clarified the revised policy on late payment charges.

Previously, consumers were subject to a 2 per cent compound interest charge for every month of delay.

In line with directives from the Bangladesh Energy Regulatory Commission (BERC), this has been replaced with a one-time late payment surcharge of 5 per cent on the outstanding bill.

Explaining meter-related charges, Mahrukh said six electricity distribution companies provide meters either through an upfront payment or monthly instalments.

Customers who purchase meters outright incur no additional charges, while those opting for instalment payments pay Tk 40 per month for single-phase meters and Tk 250 for three-phase meters.

She added that four of the six distribution companies also allow consumers to purchase approved pre-paid meters directly from the open market.

“At the request of consumers, the government is seriously reviewing the issue of meter rent, and a decision will be announced very soon,” she said.

The Power Division reaffirmed its commitment to protecting consumer interests, ensuring an uninterrupted electricity supply and building a financially sustainable power sector through improved governance and policy reforms.

Bangladesh Power Development Board (PDB) Chairman Engineer Md Rezaul Karim and Rural Electrification Board (REB) Chairman Major General SM Zia-Ul-Azim also addressed the press conference.