Bangladesh News: Pvt cos rule power sector with govt approval


Bangladesh News: The sharp increase in power purchase from the private sector continues against the rise of overall production as private plants generated 56.72 per cent of the total amount of power in fiscal year 2011-12.
Referring to the government’s mega plan, a Power Division official told New Age that the contribution of the private sector to electricity generation would hit 62 per cent by 2016.
On the one hand the government is encouraging private entrepreneurs to generate more and more power and on the other the generation by the public sector is decreasing.
According to a recent report of the state-run Power Development Board, out of 27,253.19 million kilowatt-hours (unit) of the total power in FY2009-10, 11,359.85 million units were produced by the private sector.
In FY2010-11, the private sector overtook the public sector by producing 14,811.57 million units of power, 50.24 per cent of the total.
The growth of the private sector in power generation continued in the following fiscal year and hit about 57 per cent by producing 19,918 million units of electricity out of 35,118.28 million.
PDB officials and experts said that the government’s negligence in increasing power generation by the old plants as well as the setting up of new plants in the public sector allowed the private entrepreneurs to establish their domination in electricity generation.
They said that the overall generation cost of power would continue increasing with the growing dependence on the private sector.

Bangladesh News: Pvt cos rule power sector with govt approval


Shamsul Alam, energy adviser of the Consumers’ Association of Bangladesh, told New Age on Saturday that it was the government’s policy to let the private entrepreneurs take control of the power sector.
He warned that the country’s energy security would be threatened if power production was in the control of the private sector.
Zaid Bakht, research director of the Bangladesh Institute of Development Studies, said that the common people would have to bear the brunt of the increasing generation cost of power as the concerned authorities will realise the extra cost from the consumers.
Besides, the cost of living will increase further, even for those who do not have access to electricity, because of the increase of the prices of essentials due to rise of power prices.
According to data available with the Bangladesh Energy Regulatory Commission and PDB, average power generation cost will shoot up to Tk 5.57 a unit in FY2012-13, which is more than double the cost (Tk 2.59 a unit) in FY2009-10.
Audited reports show that the PDB produced 10,488.33 million units of electricity, other public sector companies produced 5,405.01 million while small and big independent power producers generated 9,098.59 million and rental plants produced 9,098.59 million in FY2009-10.
In the next fiscal year the PDB produced 10,278.88 million units of electricity, other public sector companies 4,394.03 million while small and big independent power producers generated 9,389.64 million and rental plants 5,421.93 million.
This year power generation by the public sector plants dropped by 1,220.43 million units although total generation increased by 2,231.29 million, mainly due to the diversion of gas to the private plants from the public sector.
PDB officials said that the government had to ensure gas supply to the private plants due to contractual obligations as the minimum bills would have to be paid whether or not electricity is bought from the those plants.
In FY2011-12, power generation by the public sector increased by 527.37 million units as about 10 fuel oil-run plants had started power generation. (Source: New Age)

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