Draft ordinance to repeal quick power supply act approved

The Advisory Council today (20 November) approved the draft of an ordinance to repeal the "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010," which has been widely criticised as an "indemnity law".

The draft is subject to vetting by the Legislative and Parliamentary Affairs Division, according to a press statement issued by the Cabinet Division. 

The statement further said the interim cabinet meeting chaired by Chief Adviser Muhammad Yunus decided to repeal the law, considering the need to ensure the purchase and supply of electricity and fuel through transparent and competitive processes in the public interest. 

"This decision was made due to widespread corruption and mismanagement associated with the power generation contracts under Section 6 of the act, as well as a High Court ruling on 14 November declaring Sections 6(2) and 9 of the Act illegal," the press statement reads. 

Section 9 of the Act states that no decision or activity committed or taken under this act can be questioned in court, while Section 6(2) stipulates that any planning or proposal related to buying or investment decisions must be approved by the energy minister and sent to the cabinet committee for approval after communicating and bargaining with one or more institutions, as outlined in Section 7 of the Act.

Why and when was the law passed?

The Quick Enhancement of Electricity and Energy Supply (Special Provision) Act was first enacted in October 2010 to address the country's urgent energy needs and mitigate frequent power shortages at that time.

The Act empowered the former Awami League government to bypass energy sector legislation to fast-track power projects, given the delays caused by red tape and bureaucracy. 

Its tenure was extended several times, with the latest five-year extension made by the cabinet in September 2021. 

While the special law helped address short-term power shortages, it has faced criticism for limiting transparency and accountability, particularly due to its immunity provisions. Critics argue that these provisions created opportunities for inefficiencies, overpricing, and other abuses of public funds in the energy sector.