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The interim government has planned to reduce the overall cost of power generation by 10 per cent.
Finance adviser Salehuddin Ahmed unveiled the government’s plan in his recorded budget speech televised on Monday.
“If this plan can be implemented, it is estimated that the cost of electricity subsidy of more than Tk 110 billion will be saved,” he said.
“In principle, we have decided not to increase the price of electricity for the time being in the context of the prevailing high inflation,” said Mr Ahmed.
At present, the amount of subsidies given in the power sector is about 1 per cent of gross domestic product (GDP), which is very high.
“We are reviewing the power purchase agreements and have taken the initiative to conduct energy audits to reduce the cost of power generation,” he elaborated in his speech.
A plan has been made to supply 648 million cubic feet per day (mmcfd) of gas from domestic sources within this year and to extract an additional 1500 mmcfd from local wells by 2028.
Keeping these targets in mind, emphasis has been laid on increasing the capacity of the local gas exploration company – Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) and necessary funds have been allocated for this, the finance adviser added.
It is very important to ensure an adequate supply of energy and at the same time keep it as affordable as possible to improve the quality of life of citizens and keep the economy running, he said.