PDB paid highest unit cost to 10 power producers

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Anisul Islam Noor :
The government, in the last fiscal, purchased electricity from ten private producers at a cost much higher than others at variable prices agreed upon under the power purchase agreement.
The fact was that the government has awarded power generation contract to private firms under unsolicited bid bypassing the competitive tender process.
It has paved the way of paying exorbitantly high per unit price of electricity to the private power produces who are reportedly close to party men of ruling Awami League (AL) government to mint money, sources said.
They said, since the government has enacted new law under which nobody can challenge the unsolicited bid such high unit cost varies from party to party, without risk to be challenged in any court of law.
According to Bangladesh Power Development Board (BPDB), one private power producers are selling per unit electricity at Tk29.77 cost to BPDB while other private parties are selling it at Tk15 on an average.
They are also receiving capacity charge though their plants were shut or run on limited capacity.
BPDB paid the highest rate at Tk 29.77 per unit of electricity from Summit Mehnaghat Power Plant during 2014- 15fiscal year.
BPDB had purchased 47.60 lakh kilowatt electricity from Megawatt 305 MW diesel fired Power Plant at a cost of Tk 1,417 crore.
As per the agreement with private producers, the BPDB has to pay Tk 54,600 (U$700) per day as capacity bills against each megawatt electricity no matter the plants remained shut due to overhauling. BPDB does not purchase electricity if it is not necessary but the private plant will get the bill, sources said.Besides, Tk 1 to 2 per unit operational charge is added with the regular bills. The power generation costs of those power plants is really high fuel efficiency is not at required level, BPDB official said on condition of anonymity.
To diesel based high cost four private power generation plants, 100 MW Desh Energy Ltd from which the government purchased per unit electricity at Tk 25.89, 55MW Agrico Power plant at Tk 24.55, 50MW RZ Power and DPA Power International Ltd at Tk 24.44 and Tk23.89 respectively in the last FY.
Higher paid furnace oil based power plants were: 50MW Amnura plant of Sinha Power Company at Tk 18.75, 50MW Northern power plant at Tk 18.43, 50 Rajlonka Power plant at Tk 17.27, 110 MW Horipur NEPC Consortium Bangladesh Ltd at Tk 16.65 and RPCL at Tk 16.61 per unit.
Khaled Mahmud, Member Generation of BPDB, told The New Nation that diesel run power generation cost is higher compared with others as there were low plant factor. Diesel run power plants remain idle most of the time and generation could not be possible to increase for limitation of capacity. “The cost of power purchase from diesel run power plants are higher following add capacity and service charge with power generation cost,” he added.

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