Bangladesh Power Development Board (BPDB) has incurred a staggering loss of 1,860.04 crore taka in last three months for selling electricity at low prices while it bought power at higher prices from three sources — quick rental, Independent Power Plants (IPP) and import from India.
Besides, BPDB has saved 43.54 crore taka from seven rental power plants for last three months (March, April and May) not to use that electricity in the national grid.
Power Development Board, however, imported 111.04 crore taka from Indian electricity market at a higher price.
In a recent letter, BPDB sought 1,860.04 crore taka from finance division to meet the trade loss in sale of electricity at lower prices.
An official of finance division said BPDB trade loss from electricity sale in lower is not reduced due to coronavirus pandemic.
Usually, power development trade loss for three months is not more than 1,500 crore taka, official also said.
Letter also reads, there is a legal obligation in payment of bill for electricity import from India and purchase of power from IPP, quick and rental power plants.
The fixed cost of per unit electricity has increased due to drop in demand for electricity, hike in gas price and the increase in dollar rate compared to local currency taka, it reads.
Letter further said, price of generation of electricity will be definitely low when the nuclear and coal-based power plants come into market.
Despite power generation dropped by 20 percent across the country due to fall in the demand as most of industrial units, offices and businesses remained shut over coronavirus.
An official of BPDB said the country’s electronic generation dropped to 8,000 MW daily from average daily generation 13,000 MW.
Last month government disbursed 1,143 crore taka during March-April period to meet trade loss of BPDB as it sells at the lower price for its customers.
According to the budget documents, 18,000 crore taka — almost 30 per cent of the overall subsidy and incentive basket in the this fiscal —is kept aside for generating electricity and importing liquefied natural gas.
The dominance of power sector in the overall subsidy basket is continuing in this fiscal year due to the costly rental power plants and LNG.
Currently, the electricity generation cost at a gas-fired IPPs is less than 3.0 taka per unit (1 kilowatt-hour). The cost at a state-run gas-fired power plant is around Tk 3.0 per unit and at a gas-fired rental power plant about 4.0 taka per unit.
The electricity generation cost at a government-owned furnace-oil fired power plant is 13-16 taka per unit, at a rental or quick rental power plant 9.5-13 taka per unit, and at an IPP plant 9.0-14 taka per unit.
The electricity generation cost at a diesel-fired power plant ranges between 15 taka and 33 taka per unit.
Electricity generation cost from the lone Karnafuli Hydropower Station is less than Tk 2.5 per cent.
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