Over the past decade, the government has pursued an ambitious policy of rapid power generation and supply, leading to the establishment of several rental and independent power producer (IPP) companies. These power companies, including eight listed ones, have reported impressive net profits of more than Tk 15,000 crore.
For instance, Baraka Power Limited recorded a net profit of Tk 460 crore 52 lakh, while Baraka Patenga Power Limited made Tk 250 crore 71 lakh in net profit over the last seven years. Similarly, Dorin Power Generation and Systems Limited achieved a net profit of Tk 659 crore 50 lakh in the last 10 years. However, while the sellers of electricity, the power companies, reap significant profits, the buyer, Bangladesh Power Development Board (BPDB), faces financial constraints due to continuous losses.
BPDB’s inability to clear its dues to private power plants has added to the strain in the power sector, amounting to Tk 20,000 crore in arrears by June 2023. The current situation has led to widespread load shedding across the country. While the listed power companies have shown significant growth and profitability, the unlisted ones are yet to disclose their financial performance. Additionally, BPDB’s accumulated losses have reached a concerning Tk 65,367 crore as of June 2023. The power generation capacity of Bangladesh has significantly increased, reaching 24,911 MW by June 2023, and plans to further expand it are underway. However, the financial challenges faced by the power sector, including BPDB’s financial capacity constraints, present obstacles in meeting the country’s growing energy demands.