Move to privatise power distribution network: Minister 

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood on Wednesday said the government is planning to privatise the country's electricity distribution system to improve efficiency, transparency, accountability and bill collection, adding that Prime Minister Tarique Rahman has already approved moving ahead with the initiative.

Speaking at the Energy Security & Transformation of Bangladesh conclave, organised by Bangla daily Bonik Barta at Pan Pacific Sonargaon Dhaka, the minister said the government had invited private sector proposals to take over electricity distribution companies.

"We invited private sector proposals to take over electricity distribution companies. The prime minister has already given consent to move ahead with the initiative," he said.

The minister said private sector participation would bring greater transparency and reduce the government's burden. Urging entrepreneurs to invest in the sector, he said the electricity distribution system should be privatised, while power generation would remain under government control.

He noted that electricity distribution in neighbouring countries is managed by different companies, adding that such a model improves service quality and operational efficiency.

The minister said the previous government had left the energy sector in disarray.

"When I took charge of the ministry, I found no planning in place. No wells had been drilled, and the focus was entirely on imports. Only two FSRUs were being set up; one caught fire yesterday, and if an LNG-laden vessel had been nearby, a major disaster could have occurred. Today, LNG supply has been disrupted, and gas pressure has dropped. People in Mymensingh and various other areas are not receiving gas, nor are they getting CNG. In many places, people have taken to the streets in protest, and this has become a regular occurrence," he said.

Emphasising the need for long-term energy security, the minister said there was no alternative to increasing domestic gas exploration and production.

"At the same time, LNG import infrastructure must be strengthened so that a problem at one facility does not create a major crisis in gas supply across the country," he said.

He also criticised past planning decisions, saying a gas-fired power plant had been built in Khulna without ensuring gas supply.

"A gas-based power plant was built in Khulna without any gas supply arrangement, relying solely on the prospect of the Bhola-Barisal-Khulna pipeline, which is still only under discussion. The power plant has now become a museum. If a coal-based power plant had been located near coal mines, it would have been a different matter," he said.

The minister said Bangladesh had built a power generation capacity of 28,000 megawatts without taking adequate initiatives to explore the gas needed to run those plants.

He said the country's energy security had become more complicated amid the conflict involving Iran, forcing Bangladesh to procure LNG at higher prices because of the lack of long-term supply contracts.

"The Finance Secretary has stated that buying at higher prices would deplete the budget allocation. There are outstanding bills of Tk 67,000 crore, which must be be paid along with current bills. I assure everyone not to panic. We are trying to handle the situation honestly," he said.

The minister also spoke about the country's wider economic challenges.

"No one is as courageous as we are. In our industry, 30 percent of income is spent on banks. This shows how our businessmen are surviving. The previous government left banks empty. Many have become destitute after depositing money in banks and cannot manage their households. The looting that occurred has been allocated for in the budget to recover those funds," he said.

Highlighting the government's renewable energy plans, the minister said a new renewable energy policy had already been announced and received praise from the Centre for Policy Dialogue (CPD).

He added that those installing rooftop solar panels would receive tax rebates and reduced holding taxes, while those choosing not to install solar panels would face higher taxes.