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The Power Division has urgently sought Tk 24.48 billion in subsidies against tariff deficit as letter of credit (LC) complexities are disrupting coal and fuel imports, say sources.
It recently requested the finance ministry in favour of the Bangladesh Power Development Board (BPDB) to take necessary measures in this regard in order to help ensure uninterrupted electricity supply across the country.
The difficulties have arisen because of the government's non-payment of tariff deficit despite an approved power plant and two more undergoing the approval process by the Cabinet Committee on Government Purchase (CCGP).
The BPDB sustained the tariff deficit on account of selling electricity to bulk consumers at rates lower than the production/purchasing costs.
It generally purchases electricity from independent power producers (IPPs) and rental power plants.
Apart from that, it imports electricity from neighbouring India.
The government owes the funds to the BPDB in subsidy arrears from August to October 2025.
It owes Tk 480 million, Tk 14.69 billion, and Tk 9.30 billion to Rural Power Company Limited (210MW), Bangladesh-China Power Company Ltd (1,320MW), and Bangladesh-India Friendship Power Company Ltd (1,320MW), respectively.
A senior official told The Financial Express the subsidy had been sought immediately to ensure power supply during the upcoming national elections, the holy month of Ramadan, and irrigation, including in summer.
The money would also be used to clear outstanding payments of IPPs, continue the imports of fuel and coal, pay power plants' instalments, and open LCs.
A Finance Division official said, "We have received a request letter sent by the Power Division. We are assessing it."
The government has set a target of allocating Tk 350 billion in power subsidies for the 2025-26 fiscal year.
With the financial assistance from the government, it is possible to maintain electricity supply by making monthly payments against the electricity bills of IPPs and rental power companies.
The Power Division further said the money was also necessary to ensure the required supply of fuel oil and coal in order to maintain uninterrupted power supply in the upcoming summer.
In view of this, the power producers had already requested the BPDB on several occasions to ensure the timely payment of the outstanding electricity bills, a Power Division official said.
Without paying the outstanding bills to the IPPs and rental power companies, it would be difficult to keep power generation smooth, a BPDB official said.
The official also said electricity purchase from India might face a blow as well.
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