The Bangladesh Power Development Board (BPDB) faces significant financial deficits annually due to selling electricity below production costs, leading to substantial subsidies. In the current fiscal year, the power sector subsidy is estimated at over Tk 39,406 crore, with a major portion, 81 %, directed towards capacity charges. Although provisional, this estimate may fluctuate due to changes in power plant operations.
Recent additions to the country’s power capacity further strain BPDB’s finances. Two new gas-based power plants have commenced operations, increasing the overall capacity and thus, the centre’s rent costs. Experts emphasize that a large portion of electricity subsidies goes towards capacity charges, highlighting the need for a sustainable solution. Despite plans to raise electricity prices gradually, doubts persist about alleviating financial pressure, given rising production costs.
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