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The interim government has moved to set rates for nine large power plants that have been selling electricity to the Bangladesh Power Development Board (BPDB) without official tariff approval. However, the power plants in question are owned by the state-run entities, fully or partially.
These power plants, with a combined capacity of 3,414 megawatts, were implemented during the previous Awami League government.
Despite supplying power to the national grid, their tariffs were never formally endorsed by the Cabinet Committee on Government Purchase -- a mandatory requirement for such deals, according to official sources.
Instead, the state-run Bangladesh Power Development Board (BPDB) has been buying electricity from these plants solely on the basis of power purchase agreements (PPAs) signed with the respective operators.
These deals were reportedly approved by senior government officials at the time, bypassing the necessary cabinet committee clearance, sources familiar with the matter told The Financial Express on Sunday.
The irregularities came to light during an internal audit conducted by the interim administration, which has now asked the Power Division and the BPDB to clarify how such contracts remained in effect without proper authorisation.
All nine plants began operations between 2012 and 2023. They include two major coal-fired joint ventures -- the 1,320MW Rampal plant under the Bangladesh-India Friendship Power Company Ltd (BIFPCL) and the 1,320MW RPCL-Norinco plant in Patuakhali.
Other facilities include four plants under Rural Power Company Ltd (RPCL), two by BR PowerGen Ltd, and one solar power plant under North-West Power Generation Company Ltd (NWPGCL).
The list of plants operating without cabinet-approved tariffs includes: Bangladesh India Friendship Power Company Ltd (BIFPCL)-owned 1,320MW Rampal Power Plant, RPCL-NORINCO International Power Ltd-owned 1,320MW Patuakhali Power Plant, 210MW Mymensingh Power Plant, 52.194MW Kodda Power Plant, 25.50MW Rowzan Power Plant, and 105MW Gazipur Power Plant owned by Rural Power Company Ltd (RPCL), 163MW Mirsharai Power Plant and Kodda 150MW Power Plant owned by BR PowerGen Ltd, and Sirajganj 68MW Solar Park owned by Bangladesh-China Renewable Energy Power Company Ltd.
"This is unfortunate that these [nine] power plants are selling electricity to the BPDB without approved tariffs," said Dr Muhammad Fouzul Kabir Khan, Adviser to the Ministry of Power, Energy and Mineral Resources (MPEMR), speaking to The Financial Express on Sunday.
He added that steps have now been taken to finalise and approve the tariffs.
Due to the lack of formal approval, the Ministry of Finance (MoF) has recently withheld Tk 50.56 billion in subsidies earmarked for these plants for the period from October 2024 to June 2025.
The Finance Division has instructed the Power Division to obtain approval from the Advisory Council on Public Purchase by July 2025 in order to facilitate future disbursement of subsidies.
In response, the BPDB informed the Finance Division that it had obtained consent from the Power Division for eight of the nine plants during the tenure of the previous government.
The remaining plant, Bangladesh-China Power Company Ltd, reportedly received clearance from the Cabinet Committee on Economic Affairs, the BPDB claimed.
"These are gross violations of the country's existing regulations," said Professor M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB).
He called for the formation of an independent commission, headed by a retired judge, to investigate corruption and irregularities in the power and energy sector.
"Energy stakeholders must be included in such a commission," Mr Alam added, stressing the need for transparency and accountability in a sector he described as plagued by 'energy crimes'.
Azizjst@yahoo.com