Private producers to get their dues, Ramadan power won’t be hit: Fouzul

A day after private power producers warned of severe load shedding during Ramadan and the coming summer over unpaid bills, outgoing Power Adviser Fouzul Kabir Khan assured that dues would be cleared to keep the electricity supply uninterrupted.

Speaking at a press conference at Bidyut Bhaban in Dhaka today (10 February), Fouzul said concerns about widespread outages during Ramadan were being overstated as the government had already taken necessary steps to maintain a stable supply.

"Everyone is saying there will be widespread load shedding in Ramadan, but preparations are underway to ensure a load shedding-free Ramadan," he said.

"To release outstanding bills, the Finance Division will provide some funds. We will follow the same system that worked before."

Fouzul made the remarks after attending his last day in office as an adviser to the interim government.

His comments came a day after the Bangladesh Independent Power Producers' Association warned that the country could face severe load shedding during Ramadan and the coming summer if the government fails to immediately clear a large portion of overdue power bills.

According to the independent power producers, outstanding dues owed by the Bangladesh Power Development Board to private power producers have climbed to around Tk14,000 crore, with payments delayed for eight to ten months.

Bangladesh Independent Power Producers' Association President David Hasanat said on Monday that power plants would struggle to remain operational without immediate payments.

"If at least 60% of the outstanding bills are not paid immediately, keeping power plants online will become impossible," he warned.

Responding to questions about his performance as adviser, Fouzul said the power and energy sector is in a better position now compared to when the interim government took office.

"During our tenure, we worked as a responsible government. The situation in the power and energy sector is far better now than what we inherited," he said.

However, he also acknowledged limitations caused by the short duration of his tenure, noting that major projects in the power and energy sector typically require two to three years for implementation.

"We are leaving behind a system and a roadmap for the next government so they clearly understand what needs to be done to address the persistent problems in this sector," he said, adding that he plans to write a formal letter to his successor outlining key challenges and proposed solutions.

Identifying shortcomings, the adviser said the sector still urgently needs another Floating Storage Regasification Unit (FSRU) to keep gas supply afloat for future needs.

Due to payment uncertainties and the interim nature of the government, several foreign companies were reluctant to enter into new agreements, Fouzul said.

"Despite this, we have completed all the necessary procedures so the next government can act swiftly. The proposed new FSRU has a very attractive tariff," he added.

Fouzul also said some gas exploration efforts failed to deliver expected results.

"We drilled several wells, but did not find the expected volume of cost-effective gas," he said.

Bidding for offshore gas exploration also suffered, he noted, as uncertainty over the government's tenure discouraged potential investors.

Highlighting achievements during his tenure, the adviser said the interim government repealed the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, reduced energy prices, and eased outstanding payment pressures in the sector.

"Because of our inability to pay earlier, energy suppliers were charging additional premiums, which drove prices up," he said. "By clearing dues, we were able to reduce those costs. In the first six months alone, we saved around Tk1,500 crore as energy premiums came down after payments were made."