Kaptai output hits 144mw Govt eyes affordable electricity

All five generating units of the Karnaphuli Hydroelectric Power Station at Kaptai have resumed operation following a rise in the water level of Kaptai Lake after several days of heavy rainfall, restoring the plant’s current generation to 144 megawatts (MW).

The five units have been operating simultaneously since 6:00 pm on Tuesday.

Confirming the development, Plant Manager Engineer Mahmood Hasan said continuous rainfall and increased inflows from upstream had significantly raised the lake’s water level, allowing all five units to be brought back into operation.

Units 1 and 2 are each generating 32 MW, Unit 3 is producing 30 MW, while Units 4 and 5 are each generating 25 MW, taking total output to 144 MW.

The power station has an installed generation capacity of 230 MW. Officials at the plant’s control room said the water level of Kaptai Lake stood at 79.86 feet mean sea level (MSL) at 8:00 pm on Tuesday, compared with the seasonal rule-curve level of 84.96 feet MSL. The lake’s maximum retention level is 108 feet MSL.

Because of low water levels in recent months, the station had been operating only one or two generating units at a time. Three units resumed operation on Monday, four were brought online on Tuesday morning, before all five became operational on Tuesday evening.

Meanwhile, Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood said the government is negotiating with private power producers to reduce the financial burden of capacity charges while seeking to keep electricity prices affordable, although existing contracts backed by sovereign guarantees limit the government’s flexibility.

Replying to a supplementary question from Bangladesh Jamaat-e-Islami reserved-seat MP Mardia Mumtaz in Parliament on Wednesday, the minister said capacity charges account for a significant share of electricity subsidies and acknowledged concerns over their impact on consumer tariffs.

Mardia Mumtaz sought to know whether the government had any specific plan for the next fiscal year to address the growing subsidy burden associated with capacity charges, which are widely regarded as a key factor behind electricity price increases.

In response, Iqbal Hassan said many of the agreements signed with private power producers by the previous government include sovereign guarantees, making it difficult to terminate or amend the contracts immediately.

“These sovereign guarantees are state commitments, and cancelling them is a lengthy process,” he told the House.

The minister said the government is holding discussions with power producers on a range of issues, including late payment charges.

“We are negotiating with them on various matters, particularly late payment fees. We hope these discussions will be productive,” he said.

He added that once power generation facilities are connected to the national grid, the government cannot simply adopt a confrontational approach, as maintaining the stability and reliability of the electricity system remains a priority.

“As long as these contracts remain in force, we will continue our efforts to reduce electricity prices and ensure power is supplied at an affordable rate,” he said.

Iqbal Hassan also attributed recent pressure on electricity tariffs to higher global fuel prices following the Iran-Israel conflict.

He said the increase in fuel costs had raised the government’s subsidy burden, making tariff adjustments necessary at times to reduce subsidy expenditure.

“As fuel prices rise, we sometimes have to align electricity prices to reduce subsidies. That is why electricity prices increase,” the minister added.