IBFB calls for energy audits to restore good governance in the sector

The International Business Forum of Bangladesh (IBFB) has called on the interim government to carry out independent audits of all projects and contracts within the power and energy sectors to address existing irregularities.

This appeal was made during a seminar titled "Challenges in Reforms in Energy and Power Sector," held at the IBFB headquarters in Tejgaon on Wednesday.

At the seminar, experts advocated for the reinstatement of public hearings to determine electricity and energy product prices.

The seminar featured former BUET Professor Dr Tamim as the guest of honour, with Dr Ijaj Hossain of BUET delivering the keynote presentation. IBFB President Humayun Rashid opened the seminar, emphasising that the IBFB has been advocating for the interests of the local business community as an apolitical platform for over two decades.

In his address, Professor M Tamim addressed the misconceptions surrounding capacity payments. He called for a thorough analysis into the Tk 1 trillion payment to determine its actual usage.

He criticised the politicisation of technical issues in the energy sector, stating that "In Bangladesh, we are driven by figure-based politics.”

For example, the Awami League had set a target of 24,000 megawatts of electricity production as a political goal, while Bangladesh is only utilising 13,000 MW.

Technical matters, including energy, have been turned into political issues, leading to data manipulation across the board.

The country's projected GDP growth target of 9 per cent for the next 20 years is unrealistic in the current context.

Dr Tamim also pointed out the lack of local gas exploration in the country's energy sector due to personal profit motives.

Keynote presenter, Dr Ijaj Hossain questioned the role of the Energy Ministry, noting that in developed countries like the United States, the government does not determine energy prices.

He remarked, "Our Energy Ministry has become a behemoth. In the US, while there is an Energy Minister, independent bodies such as the Bangladesh Energy Regulatory Commission (BERC) are responsible for providing civil services, including energy regulation."

Dr Ijaz further mentioned that the crisis in industrial energy consumption has not led to increased energy use.

He stated that "around 60 per cent of our natural gas is used for power generation, with 18 per cent going to captive power generation. Residential gas consumption accounts for 11 per cent. Currently, 20 out of the country's 29 gas fields are operational, and our gas production stands at 2,202 mmcfd. However, increased gas consumption in various sectors over the past five years has led to supply shortages."

He also underlined that system losses in the country's gas transmission lines, accounting for 5 per cent, result in an annual economic loss of approximately $1 billion. With LNG imports at $15 per unit, these losses are expected to increase.

Dr Ijaz warned that the country's natural gas reserves could be depleted within nine years.

Showkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), criticised the Energy Ministry for becoming a hub of corruption despite being under the control of the government for the past 15 years.

He cited an example of a Bangladeshi company that shifted to Singapore amid a financial crisis, sending dollars abroad while the country's reserves were under pressure, with ordinary citizens bearing the cost.

BTMA Director Razeeb Haider noted that gas prices in the industry have risen by over 200 per cent in recent years, now costing Tk 31.5 per unit. He expressed concern about the impact on foreign contracts and overhead costs in business, given the unpredictable rise in gas prices.

Haider also mentioned that despite rural electrification, load shedding remains a significant issue, as the Rural Electrification Board has yet to achieve the capacity to provide industrial-level services.

Other speakers at the seminar included Bangladesh Solar and Renewable Energy Association (BSREA) President Nurul Akhtar, IBFB founder president Mahmudul Islam Chowdhury, and IBFB Vice-President M S Siddiqui also spoke. The seminar was moderated by Molla Amzad, Editor of Energy & Power.

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