The Power Division has urgently sought Tk 24.48 billion in subsidies against tariff deficit as letter of credit (LC) complexities are disrupting coal and fuel imports, say sources.
It recently requested the finance ministry in favor of the Bangladesh Power Development Board (BPDB) to take necessary measures in this regard in order to help ensure uninterrupted electricity supply across the country.
The difficulties have arisen because of the government's non-payment of tariff deficit despite an approved power plant and two more undergoing the approval process by the Cabinet Committee on Government Purchase (CCGP).
The BPDB sustained the tariff deficit on account of selling electricity to bulk consumers at rates lower than the production/purchasing costs.
It generally purchases electricity from independent power producers (IPPs) and rental power plants.
Apart from that, it imports electricity from neighboring India.
