Along with repealing the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, the interim government has introduced several policy changes and initiated reforms across six areas of the power sector.
A report detailing these reforms, completed by June 15, was released by the Chief Adviser’s Press Wing and shared with the media on Wednesday.
The key policy reforms highlighted in the report include:
Repeal of the quick energy supply act
On November 28 last year, the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, was repealed.
Reversal of BERC Act amendment
On August 27 last year, the amendment to the Bangladesh Energy Regulatory Commission (BERC) Act 2003, was reversed.
Previously, the commission had the authority to set electricity and gas prices, which was later shifted to the ministry under the previous government.
The reversal of this amendment has restored BERC’s authority to independently set prices through public hearings.
This ensures greater transparency and aligns with IMF loan conditions.
Review of capacity charges
The government is currently reviewing agreements with Independent Power Producers (IPPs) to eliminate the provision of “capacity charges.”
Under this system, the government had to pay charges to private power plants even when no electricity was procured from them, increasing the financial burden.
New renewable energy policy
A new policy is being drafted to expand the use of renewable energy.
The current government has set a target of generating approximately 4,000 megawatts of electricity from renewable sources.
Merchant Power Policy
This policy, effective from December 1, 2024, allows owners of private power plants to sell electricity directly to the electricity distribution companies or to the consumers.
Previously, they were only allowed to sell electricity to the Bangladesh Power Development Board (BPDB).
Cancellation of Letters of Intent
On November 18 last year, the current government canceled 31 Letters of Intent (LoIs) for renewable energy projects issued under the previous administration.
These proposals were deemed unsolicited and irregular.
