21st July 2022
EP Report

Capacity charges for idle power plants, theft in the name of system loss, wastage and dependency on imported gas and fuel without exploring alternatives are the main causes behind high energy costs, said speakers at a recent dialogue.


Centre for Policy Dialogue (CPD) organized the event titled "Energy and Power Sector in the National Budget for FY2022-23" at a city hotel.


CPD urged the government to allocate more in the budget for the power transmission and distribution, rather than for its generation.


Though the country has achieved the milestone of 100 percent electrification, people are far from getting affordable and uninterrupted power. The government should focus on exploring alternatives due to the hike in prices of gas and fuel in the international market, said CPD.


CPD Research Director Dr Khondaker Golam Moazzem, during his keynote presentation, said the capacity payment to private sector power plants, including rental and quick rentals, has gone up to Tk 26,505 crore in FY2022 from Tk 5,600 crore in FY2018.


"It would be Tk 31,600 crore in FY2023. This capacity payment obligation has forced the government to move for increasing power tariff," he said.

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