Efforts are being made to maintain uninterrupted electricity supply, and we are ready to provide maximum support to the new government. However, Bangladesh Independent Power Producers Association (BIPPA) has said that it will be extremely difficult to continue supplying electricity if outstanding payments are not cleared.
BIPPA President David Hasnat made the remarks at a briefing held at a hotel in the capital on Thursday (19 February). For a long time, BIPPA has been saying that without receiving arrears, it will not be possible to maintain uninterrupted power supply.
In response to a question, BIPPA’s former President Imran Karim said that when the interim government took office (in June 2024), the outstanding dues to private power plants were equal to four months of bills. At present, the arrears have increased to 8 to 10 months.
He said the interim government reduced the arrears to three months in 2025, but after that it stopped paying bills. Occasionally, it paid bills for 10 to 15 days at a time. Outstanding bills for furnace oil-based power plants have exceeded Tk 14,000 crore.
He added that because of unpaid dues, importing furnace oil has become difficult. Many companies are unable to pay installments on bank loans. “If we cannot import oil, how will electricity be produced?” he said. “Bills of foreign companies have been paid properly, but we local entrepreneurs are not receiving our dues. This can be called extreme discrimination.”
In response to another question, he said, “We want to support the new government to the fullest. But if there is no alignment between expectations and capacity, how long will it be possible? At some point, even banks will not want to issue LCs for us.”
BIPPA President David Hasnat said that since July, bill payments have been reduced. Instead of paying bills, a decision was taken to impose LD. He claimed this was done deliberately so that load-shedding problems would arise during the new government’s tenure. He also alleged that discrimination is being practiced between foreign and local power companies on the same issue.
In response to a question from journalists, he said, “We have said before that the interim government has positioned us against the new government. Otherwise, why would they unfairly decide to deduct LD (penalties) just a few days before leaving office?”
He said they had met officials of the Bangladesh Power Development Board (BPDB), who privately admitted that the decision to deduct LD was not correct. However, since the order came from the Ministry of Finance, officials felt helpless—fearing they could get into trouble if they did not implement it. He said that if the LD were waived, they might face complications with the Anti-Corruption Commission.
Imran Karim said that under the terms of the contract, if BPDB fails to pay bills, its right to demand electricity would become void. He alleged that LD penalties were deducted at a time when production had already been restricted.
He said that in a similar situation, the Chinese-owned Barishal Power Company was fined Tk 270 crore, but that money was later returned. “In our case, a different decision is being taken. Foreign companies are treated one way, and we are treated differently, even though the contract terms are exactly the same,” he said.
Expressing frustration, he said, “We private entrepreneurs generate more than 50% of the country’s electricity, yet a policy was made without even calling us. I don’t think such an example exists anywhere in the world.”
He said legal steps are being taken to protect themselves regarding LD deductions, and added that they hope the courts and the Energy Regulatory Commission will deliver proper justice.
Baraka Group Chairman and Vic-President of BIPPA Faisal Chowdhury said, “We invested our hard-earned money from abroad in the power sector. Because of arrears, we have not been able to pay any dividends for two years. As part of a blueprint, the interim government treated us with hostility. They tried their best to place us face-to-face with the new government.”
Earlier, on 9 February—before the election—BIPPA said at a press conference that it would be difficult to continue power generation without receiving outstanding payments. In response, newly elected Minister for Power, Energy and Mineral Resources Iqbal Hasan Mahmud Tuku said that if they made such statements, it would amount to blackmail.
Regarding the minister’s comment, BIPPA’s president said it is natural for the new government to view the issue as blackmail. However, he insisted that this is not an attempt to pressure the government. “We are trying in every way to keep production running. At the same time, we are informing the government of the situation,” he said. He added that they are trying to explain to the government that they cannot purchase oil because banks are not opening LCs.
