Outstanding payments owed by the Bangladesh Power Development Board (BPDB) to furnace oil–based domestic power generation companies have reached around Tk 14,000 crore, industry representatives said on Monday.
Due to prolonged delays in bill payments, the companies are facing a severe financial crisis and are demanding that at least 60% of the outstanding dues be cleared before Ramadan to stabilize operations.
The Bangladesh Independent Power Producers’ Association (BIPPA) disclosed the information at a press conference held at a hotel in the capital. BIPPA President David Hasanat, former president Imran Karim, and other association leaders were present.
BIPPA said that bills have remained unpaid for eight to 10 months, depending on the company. As a result, combined with foreign exchange rate fluctuations and high-interest bank loans, the financial losses of the companies have reached nearly Tk 8,000 crore. Many firms are being forced to borrow at high interest rates to cover daily operating costs and finance fuel imports.
Under power purchase agreements, power producers have the legal right to suspend electricity supply if payments are not made within the stipulated time. However, considering national interest, domestic power plants have continued supplying electricity to the national grid, even by borrowing funds, BIPPA said.
Power plant owners also alleged that when production is constrained due to financial difficulties, the National Load Dispatch Centre has imposed higher compensatory penalties by showing demand inconsistent with actual demand. They claimed that these penalties are being used to show BPDB’s outstanding liabilities as lower on paper. Penalties have already been deducted from the outstanding bills of several companies, while the process is ongoing for others.
BIPPA warned that a prolonged crisis could create major instability in the power and energy sector, potentially disrupting electricity generation, fuel imports, and future investment.
“If the outstanding payments are not received, importing fuel oil and operating power plants will become difficult,” BIPPA President David Hasanat said. “Electricity demand may exceed 18,000 megawatts in the coming summer. If payments are not made on time, the risk of load-shedding will increase. In this situation, clearing a large portion of the dues before Ramadan is essential.”