Local independent power producers (IPPs) have urged the government to clear at least half of their outstanding dues, approximately Tk9,000 crore, within 10 days to prevent power shortages during the upcoming Ramadan in March and the subsequent irrigation season.
During a meeting with Power Division Secretary Farzana Mamtaz at the Secretariat on 7 January, IPPs warned that failure to settle dues promptly would hinder their ability to import fuel oil necessary for running power plants.
They said up to 2,500MW of heavy fuel oil (HFO)-based power generation capacity could remain idle during Ramadan if fuel imports are delayed. This would result in significant load shedding at a time when demand will grow significantly.
Highlighting the gravity of the situation, Bangladesh Independent Power Producers' Association (Bippa) President KM Rezaul Hasanat, said, "Approximately Tk18,000 crore in bills remain unpaid [in the power sector], with payment delays now exceeding six months, compared to the 45-day limit stipulated in contracts.
"Around Tk9,000 crore of the dues are owed to local companies. If at least half of this amount, Tk4,500 crore, is cleared by mid-January, it would enable timely imports of HFO."
