GBB Power Ltd, which recently closed its 20MW power plant due to the expiration of a 15-year power purchase deal, may reopen the plant on a “no power, no payment” basis, despite the potential impact on future profits. The company experienced a 7.80% year-on-year decline in profit, attributed to increased gas prices and a subsequent surge in gas bills. GBB Power has already requested an extension of the agreement with the Bangladesh Power Development Board (BPDB). While an extension is expected, company officials indicate that if a fresh deal is signed, GBB Power will not receive capacity charge payments for power generation. Shareholders are concerned about potential losses, as the closure of the only power plant could negatively impact upcoming quarters unless the agreement is extended.
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