The ousted former Awami League government had increased the price of electricity by staggering 188 percent in last 15 years from 2009 to 2024. Prior to this, the price of electricity was increased 4 times from 2011 to 2009. In this period, the price of electricity to customers has been increased by 16 percent. However, in the last one and half decades of AL government, the price was increased 14 times.
The increase in electricity prices enhanced the prices of all products in the country's manufacturing sector, which has affected the quality of life of people as a whole. Energy experts told The Bangladesh Pratidin that there are several reasons behind collecting excess electricity bills from customers. Consumers have been exploited and looted by unreasonably increasing electricity prices per unit. They identify several reasons for the frequent increase in electricity prices. Among them - without protecting the country's interests, Bangladesh's unequal power contract with the Indian industrial group Adani and implementation of power purchase agreements with various private power plants at several times higher prices under the rapid increase in the supply of electricity and energy (special law).
Energy experts also said that although the capacity of the power sector has increased in the last decade and a half, the price of electricity has increased at an incredible rate. They believe that the increase in production capacity compared to the demand, uncompetitive market and irregularities along with unprecedented corruption in the sector are responsible for this. In the name of meeting the debt and liabilities in the electricity sector, the price has been increased and imposed on the consumer. From consumers to electricity producers, all organizations have suffered.
Adani's power costs higher: Adani projects have to pay more to the Bangladesh Power Development Board (BPDB) than other coal-fired power plants in the country. Energy experts say that Bangladesh's power deal with Adani Group is discriminatory and fraudulent. They say that Adani Group has cheated Bangladesh through this deal. They resorted to rigging in this agreement.
People related to the power sector say that the Adani industrial group of India has taken the additional price of electricity with various strategies including additional coal, capacity charge. For this reason, energy experts have also demanded the cancellation of the contract of the 1,600 MW power plant in Jharkhand of India. Since last year, Awami League has been importing electricity, ignoring the criticism on the issue of electricity import at higher prices. In June this year, Adani has fixed the price of coal at Tk 8.22 per unit of electricity. At that time, the cost of coal in Payra power plant was Tk 6. 22. Last financial year, Adani charged capacity charges and operating expenses of more than Tk 7 per unit of electricity. People related to energy sector say that Adani has an opportunity to collect an additional Tk 1 lakh crore in 25 years by showing the additional cost.
Complaints against Adani include charging higher prices by using cheap coal, not showing the real price despite getting tariff concessions. Apart from this, there are various weaknesses in the purchase agreement including notifying the specific demand of electricity three months in advance, purchasing electricity at least 34 percent of the production capacity, wasting more than 1 percent of coal.
The interim government is suspending the Rapid Supply of Electricity-Fuel Act. The expert committee is looking into the technical and financial aspects of the agreements made with various organizations including Adani under this Act. The Directorate of Customs Intelligence and Investigation is looking into the customs and tax irregularities at Adani Center. In the meantime, due to the uncertainty of the future of electricity export to Bangladesh, India has recently opened the opportunity to sell electricity in its own country. It is feared that this agreement of Bangladesh with Adani may be cancelled as the interest of Bangladesh was not protected in this agreement. Adani Group has got an opportunity to earn additional income of several thousand crore Tk annually. Recently, a senior official of the electricity department said that Adani is taking the initiative to sell electricity in India. Here lies the opportunity for Bangladesh. Contracts may be reviewed and terminated.
Last financial year, about 816, 66, 77,000 units of electricity were purchased from Adani's center. The average capacity charge for this power generation is Tk 6. 60 and maintenance and operating cost is Tk 1. Fuel (coal) cost is Tk 7. 54 per unit. In other words, Adani's electricity purchase cost was Tk 15.14 on average. Adani's operating costs are higher than other coal-fired plants due to unequal benefits in contracts.
Energy expert and energy advisor of Consumers Association of Bangladesh (CAB) Professor Shamsul Alam told The Bangladesh Pratidin, “Adani made the deal by paying bribes. Adani Group is the contractor for this contract. Therefore, we can declare Adani as an ineligible contractor in the eyes of law. Hence, we will cancel their contract and won’t take electricity from them. We can generate electricity by buying coal ourselves for half the money that we will buy power from Adani. In public interest, we will cancel this contract and produce electricity in other coal-based power plants of the country instead of buying electricity from Adani.”
(The report was published on print and online versions of The Bangladesh Pratidin on September 30 and rewritten in English by Lutful Hoque Khan)
