Bangladesh parliamentary committee identifies mismanagement in power sector

A parliamentary standing committee in Bangladesh has identified significant mismanagement as the primary reason for the country’s inability to meet electricity demand, despite having sufficient production capacity. During its first meeting, the committee reviewed the current status of the power sector, noting a massive gap between potential and actual output. For instance, gas-based power has a capacity of 12,022 MW but is only producing between 4,000 and 5,000 MW. Liquid fuel-based power is similarly underperforming, producing only 2,500 to 3,000 MW out of a 6,409 MW capacity.

Committee members raised serious concerns regarding the lack of public hearings before fuel price hikes, noting that regulations for such hearings have not been established in 23 years despite legal requirements. There were also calls for a forensic audit to justify capacity charges paid to power plants, which totaled approximately 289,949 crore BDT between 2009 and 2026.

To promote renewable energy, the committee discussed incentives for rooftop solar systems, suggesting a rate of 10.50 BDT per unit for surplus electricity supplied to the grid for those who install such systems by February 28, 2027. Additionally, concerns were raised regarding diesel reserves, which currently stand at only 31 days of supply.