Electricity supply shortage disrupts production at Dhaka EPZ factories

Highlights:

• Gas supply cut on 28 April halted DEPZ power generation
• Ongoing load-shedding worsens power issues at factories
• DEPZ confirms voltage issues, denies load-shedding
• 7-8 cos lodge formal complaints about power problems

Despite the restoration of electricity supply, voltage fluctuations continue to disrupt production in factories at the Dhaka Export Processing Zone (DEPZ), leading to machinery damage and reduced worker productivity, according to factory operators.

Several companies have also raised concerns about ongoing load-shedding, which is further compounding the issue and negatively impacting operations.

DEPZ Executive Director Md Shariful Islam told The Business Standard, "There is no load-shedding today [yesterday], but voltage fluctuations are causing significant trouble – especially damaging machines and fabrics in textile mills." 

He added, "We've reported the issue to the Rural Electrification Board (REB), and they are working to resolve it. No factories have had to shut down, although at least seven to eight companies have formally complained about the electricity situation."

Root cause

The root of the problem dates back to 28 April, when Titas Gas Transmission and Distribution Company cut off the gas supply to the DEPZ power plant, operated by United Power Generation and Distribution Company, due to unpaid dues. This move led to a sudden halt in power generation, forcing most factories to send workers home for the day.

In response, Dhaka Palli Bidyut Samity-1 began supplying 10 megawatts (MW) of electricity to meet essential needs. The full electricity demand was eventually met through an alternative supply arrangement.

The daily electricity demand for DEPZ is about 45 MW, though it fluctuates throughout the day based on operational requirements.

Shams Mahmud, managing director of Shasha Denims Ltd, expressed concern about the unstable electrification board connection. "Voltage fluctuations are damaging machines and hampering productivity. While our units rely on captive power, others in the zone are likely facing more significant challenges," he said.

Md Mizanur Rahman, deputy manager (commercial) at Bengal Windsor Thermoplastics, echoed these concerns. "Frequent load-shedding and unstable voltage are real problems. They are affecting both production and productivity. We urge the authorities to address the situation promptly."

Factory output plunges

An official from a DEPZ dyeing factory, speaking on the condition of anonymity, said their operations have been hit hardest. 

He added, "Stable power and steam are essential for us. Our output has dropped from 5-6 tonnes per day to just 1 tonne, and if this continues for a month, we may have to shut down."

However, Palli Bidyut officials have denied ongoing issues.

Md Akhteruzzaman Laskor, senior general manager of Dhaka Palli Bidyut Samity-1, stated, "There has been no load-shedding or voltage instability in DEPZ. There was a brief voltage issue between 8am and 8:30am [yesterday], but it was resolved by 9am." 

He added that the electricity demand for Dhaka EPZ was being met without interruption. On the same day, the peak demand was 41 MW, while in areas under Dhaka Palli Bidyut Samity-1, the highest demand was 439 MW at 3:20pm, with a supply of 394 MW.

In this regard, the manager of the United Power Generation and Distribution Company plant, Momtaz Hasan, and Titas Gas authorities have not provided any updates.