Bangladesh News Desk: The government’s subsidy in the power sector is likely to reach a record high and stand at Tk 270 billion this fiscal year despite the increase in power tariff.
The subsidy will be Tk 44.13 billion higher than the previous fiscal year while the amount will be Tk 100 billion more than the current fiscal’s initial budget allocation, officials said.
“The power subsidy has increased after another mega power plant was added into the generation system at Rampal through a joint venture, and power imports from Adani Group. Besides, the dollar market volatility as well as depreciation of local currency are also responsible for it,” an official of the power sector said.
The subsidy was at Tk 225.87 billion in the last fiscal year.
According to officials, the Bangladesh Power Development Board (BPDB) has so far received Tk 210.31 billion subsidy out of Tk 270 billion in the current fiscal year with arrears of November, 2022. The Finance Division fixed the power subsidy of Tk 170 billion for the current fiscal year, but it was revised to Tk 230 billion.
Talking over the subsidy, Power Secretary Md Habuibur Rahman said, “We have already got the nod to disburse Tk 270 billion as subsidy in the current fiscal year. Of the subsidy, Tk 230 billion will come from the government’s Finance Division and the rest from other sources including the Electricity Development Fund.”
About the outstanding electricity bills in the private sector, BIPPA president Faisal Khan said the cumulative loss of the private power generation stands at Tk 40 billion “that is only for delay in payment of bills and dollar rate fluctuation here.”
“The portion of Summit Group loss stands at Tk 650 crore alone,” he pointed out.
Faisal Khan said, “We owed six months of electricity bills before November, 2022 which came down to four and half months.”
BIPPA president said, “As there was delay in getting dollars, we already requested the Bangladesh Petroleum Corporation to import furnace oil and diesel for electricity generation in the private sector.”
He, however, expressed hope that the situation would be overcome soon.
According to the BPDB, the electricity generation of the country witnessed a record 14,932 megawatt on Wednesday. Of the generation, the contribution of the liquid fuel was around 5,300 MW.
The government, however, has raised power tariff by 5 percent to Tk 8.25 per kilowatt hour on an average at the consumer level to minimise loss or reduce subsidy from March 1, 2023.
The Power Division in an administrative order raised the power tariff. The electricity price has been hiked to adjust subsidy, said the circular.
It was the third time the electricity price increased since January 2023.
