The ongoing depreciation of the local currency against the US dollar has taken a toll on power producers in the country. Out of the nine listed power companies, 78% (seven companies) experienced profit declines during the first nine months of the current fiscal year 2022-2023. Fuel prices, including gas, coal, diesel, and furnace oil, have soared due to the costly dollar, increasing production costs for power generation.
The shortage of fuel and the dollar crisis has resulted in power producers being unable to operate at full capacity, impacting their profitability. Baraka Patenga Power reported a net loss of Tk 18.16 crore, while Khulna Power Company suffered losses of Tk 81.86 crore during this period. Baraka Power’s net profit plummeted by almost 90% to Tk 6.35 crore. United Power Generation and Distribution experienced an 18.5% decline in profit, while Summit Power saw a 28.3% drop. The currency depreciation and rising costs have challenged the financial performance of power producers.