The Bangladesh Independent Power Producers Association (BIPPA) has expressed concern that electricity supply may be disrupted during Ramadan and the upcoming summer season due to mounting unpaid bills and complications in fuel imports.
Speaking at an exchange meeting at a hotel in Banani, Dhaka, on Thursday, leaders of the organization said private sector power plants have not been receiving regular payments since July last year. Although efforts are being made to continue power generation, growing arrears have created difficulties in opening letters of credit (LCs) with banks, which in turn is hampering fuel oil imports.
In introductory remarks at the meeting, it was stated that outstanding payments began to rise following the Russia–Ukraine war in 2022. Although partial adjustments were later made through bond releases, arrears increased again in mid-2024. It was claimed that while some payments during the tenure of the interim government reduced the backlog, outstanding dues have since risen again.
BIPPA President KM Rezaul Hasanat said: “After July, bill payments were reduced and, instead, a decision was taken to impose penalties.” He warned that the situation could lead to load-shedding under the new government and alleged discrimination between foreign and domestic power companies.
He added: “The government may view the inability to operate power plants due to arrears as blackmail, but this is not an attempt to exert pressure. Entrepreneurs are making every effort to keep production running. However, without being able to open letters of credit, fuel cannot be purchased — this is the reality being conveyed to the government.”
According to the organization’s data, the country’s peak electricity demand on Wednesday was approximately 13,000 megawatts, higher than in recent years for this time of year. It is therefore anticipated that demand may increase further during the current summer season.
BIPPA noted that nearly 50% of the country’s total electricity is generated by the private sector and called for urgent government initiatives to clear outstanding dues through coordinated efforts to ensure a sustainable solution.
