Indemnity provision for quick rental power plants unlawful: HC
Section 9 of the Quick Rental Act says that no decision or activity committed or taken under this act can be questioned in court, while section 6(2) of the act says that any planning or proposal related to the buying or investment decisions has to be approved by the energy minister and sent to the cabinet committee for approval after communicating and bargaining with one or more institutions following Section 7 of the Act
The High Court has declared two sections of the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act illegal and void, ruling them unconstitutional. These sections granted the energy minister exclusive authority over agreements with quick rental power plants and provided immunity from legal obligations to quick rentals.
The court also directed the relevant authorities to take immediate steps to ensure that all state-owned power plants are operational in the interest of the people and the country.
The High Court bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury passed the order during the hearing of a writ petition filed in this regard.
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Supreme Court lawyer Shahdeen Malik, along with Barrister Cynthia Farid, moved for the petition during the hearing.
After the hearing, Shahdeen Malik told reporters that with this order, the energy minister's exclusive authority over project agreements and related procurement decisions has been revoked. The government can now reconsider contracts with rental-based power plants if it chooses to do so.
In its ruling, the court stated that a law which grants immunity to companies from being questioned is illegal, and no individual should have sole authority over power sector dealings in a democratic country, as it contradicts the Constitution.
Shahdeen Malik said that the law included a special provision enabling quick rental power plants to receive full payment whether they supply power or not.
Enacted by the previous Awami League government, this law provided a means for the power plants to exploit the system, he said.
On 2 September, the High Court issued a rule asking why the provision that acquits rental and quick rental power plants from any questioning regarding establishment and operations should not be declared illegal.
Supreme Court lawyers Shahdeen Malik and Tayeb-Ul-Islam Showrov filed the writ questioning sections 9 and 6(2) of the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010.
Section 9 of the Act says no decision or activity committed or taken under this act can be questioned in court, while section 6(2) of the act says that any planning or proposal related to the buying or investment decisions has to be approved by the energy minister and sent to the cabinet committee for approval after communicating and bargaining with one or more institutions following Section 7 of the Act.
Why and when was the law passed?
The Quick Enhancement of Electricity and Energy Supply (Special Provision) Act was first enacted in October 2010 to address the country's urgent energy needs and mitigate frequent power shortages at that time.
The Act empowered the former Awami League government to bypass energy sector legislations to fast-track power projects, given the delays caused by red tape and bureaucracy.
Its tenure was extended several times, with the latest five-year extension made by the cabinet in September 2021.
While the special law helped address short-term power shortages, it has faced criticism for limiting transparency and accountability, particularly due to its immunity provisions.
Critics argue that these provisions created opportunities for inefficiencies, overpricing, and other abuses of public funds in the energy sector.
