The power sector in Bangladesh is grappling with a significant increase in power generation costs, driven by rising international energy prices and a high dollar exchange rate. Despite raising wholesale electricity prices, the Power Development Board (PDB) has been unable to curb its losses, resulting in a substantial subsidy burden. The Ministry of Finance’s irregular release of subsidies has exacerbated PDB’s funding crisis.
As of June in the current financial year 2022-2023, the outstanding subsidy for 2021-22 amounts to Tk 22,000 crore, out of a total discount of Tk 26,510 crore. However, the subsidy required for the ten months ending in April stands at Tk 36,120 crore. PDB’s outstanding bills, including those from public-private power plants, amount to Tk 33,105 crore, with Tk 6,521 crore owed by various government power plants and Tk 25,070 crore by private plants.
The subsidy demand for the current financial year is estimated to exceed Tk 39,000 crore, highlighting the urgent need for timely subsidy disbursements. The release of allocated subsidies is crucial for maintaining an uninterrupted power supply and mitigating the energy crisis. PDB officials stress the importance of addressing the mounting subsidy arrears to ensure a stable power sector.
Source for more details:
