Power bill arrears from public, private entities cross Tk10,000cr

Infograph: TBS

Public and private entities across the country owe over Tk10,000 crore in unpaid electricity bills to six distribution companies, according to the Power Division.

As of March this year, 56 ministries, divisions, and their subordinate bodies had outstanding electricity bills totallingTk2,475 crore, while private entities' arrears amounted to Tk7,554 crore. Despite years of meetings, notices, and even legal actions, distribution companies have failed to recover the dues.

Power and Energy Adviser Muhammad Fouzul Kabir Khan told TBS, "Efforts are underway at all levels to collect the arrears. The Finance Division has been asked to allocate necessary funds to clear outstanding bills of government institutions."

Officials said the Power Division is preparing to write a letter recommending that the Finance Division keep additional allocations for each ministry in the revised budget for FY2025–26 to settle accumulated dues.

In a bid to speed up collections, Power Secretary Farzana Momtaz has sent two demi-official (DO) letters this year to all ministry and division heads, stressing that the longstanding arrears are obstructing overall power sector management and planning. 

She warned that distribution companies, which purchase electricity from power plants and supply it to consumers, are struggling financially due to non-payment, making it difficult to cover power purchase costs. Timely bill payments by consumers are therefore critical for easing the companies' financial strains and safeguarding national interests.

Who are the power distributors? 

The six companies — the Bangladesh Power Development Board (BPDB), Bangladesh Rural Electrification Board (BREB), Dhaka Power Distribution Company (DPDC), Dhaka Electric Supply Company (DESCO), West Zone Power Distribution Company (WZPDCO), and Northern Electricity Supply Company (NESCO) — buy electricity from public and private plants and distribute it nationwide.

Government institutions collectively owe Tk457 crore to BPDB, Tk232 crore to BREB, Tk788 crore to DPDC, Tk439 crore to DESCO, Tk191 crore to WZPDCO, and Tk367 crore to Northern NESCO, according to Power Division sources.

BPDB Chairman Rezaul Karim said collections have slightly improved after letters were issued to ministries and divisions, but the progress remains far from satisfactory. "With the new fiscal year, FY26, beginning and agencies receiving allocations for electricity bills, we expect arrear payments to increase," he added.

Although public and private customers collectively owe them over Tk10,000 crore, the companies' own payables for power purchases exceed this figure, exacerbating their financial crisis.

A senior official said BPDB is owed Tk1,525 crore by state and private entities for power sales. Meanwhile, as of March, BPDB itself owes nearly Tk22,000 crore to domestic and foreign power plants and another Tk20,000 crore for gas purchased to produce power in its own plants. The debts persist due to unpaid electricity bills and delays in subsidy disbursements from the government.

DESCO Executive Director Md Kamrul Islam pointed out that a major arrear — around Tk240 crore — remains stuck with the Mohammadpur Bihari camp amid legal disputes, while dues from other government institutions are comparatively minor.

Local govt division leads arrears with Tk924cr

The Local Government Division and its agencies owe the highest amount in unpaid electricity bills—around Tk924 crore, according to Power Division sources. 

The defaulters include Dhaka, Chattogram, Rajshahi, and Khulna WASAs, the Local Government Engineering Department, the Department of Public Health Engineering, as well as city corporations, municipalities, district, upazila, and union parishads.

LGD officials said most arrears stem from city corporations, municipalities, and union parishads, with WASAs also contributing significantly. A large share of these bills is tied to electricity used for street lighting services.

The Ministry of Disaster Management and Relief is the second-largest defaulter, with Tk577 crore in outstanding bills—mainly due to unpaid electricity charges of the Refugee Relief and Repatriation Commissioner's Office in Cox's Bazar. The office manages 33 refugee camps in Ukhiya and Teknaf, and one in Bhasan Char, where the government covers electricity costs. The Tk240 crore dues from the Mohammadpur Bihari camp also fall under this ministry.

Other major defaulters include the Ministry of Defence (Tk200 crore), the Housing and Public Works Division (Tk129 crore), the Public Security Division (Tk84 crore), the Ministry of Agriculture (Tk74 crore), and the Secondary and Higher Education Division (Tk70 crore).

Even the Chief Adviser's Office — the head of government — has arrears of Tk12 crore, while agencies under the Power Division itself owe an equal amount.

Postpaid meters are being phased out to curb defaults

To prevent institutions from defaulting on electricity bills in the future, distribution companies are replacing postpaid meters with prepaid ones. 

The process has already begun in many areas and will soon be introduced in government offices as well, a senior Power Division official told TBS on condition of anonymity.

He said, "Consumers will have to purchase electricity in advance before using it. Distribution companies will no longer need to chase customers for payments."