Tk1.04 lakh crore paid as capacity charge, rental in AL govt’s 3 terms: Nasrul
The state minister placed a list of the names of 82 IPP power plants and 32 rental power plants and the amount of money paid to them.
The Awami League government in its three terms has so far paid a total of Tk1,04,926.81 crore to 82 independent power producers and 32 rental power plants as capacity charge and rental payments, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said on Tuesday.
The Bangladesh-China Power Company Plant was paid the highest Tk7,455 crore among the independent producers and Aggreko International Projects was paid the highest Tk2,341 crore among the rental power plants Nasrul said in reply to a question in parliament, reports UNB.
The other top independent producers are Meghna Power Ltd (Tk5,475.12cr), Rural Power Company Ltd (Tk4,004.08cr), Summit Meghnaghat Power Ltd (Tk3,644.39cr), Sembcrop NWPC Ltd (Tk2,823.66cr), APR Energy (Tk2,788.04cr), Summit Bibiyana Power Company Ltd (Tk2,683.03cr), Haripur Power Ltd (Tk2,557.63cr), United Ashuganj Energy Ltd (Tk2,376.64cr), and Bangla Trac Power Unit 1 Ltd (Tk2,376.64cr).
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Nasrul said the significant terms of the agreements executed with the power plants against which the capacity charge has been paid are:
- Annual availability should be 90%. Less than this is deducted from the capacity payment
- Dependable capacity test to be performed annually
- Operation security must be provided while operating the power plant
- Insurance for risks during operation of power plant should be made
- Licence has to be renewed every year through the Bangladesh Energy Regulatory Commission
- Environmental clearance should be obtained
- Electricity will have to be supplied as per the demand of the National Load Dispatch Centre of Power Grid Company of Bangladesh
- Timely maintenance of power plants should be done
- The power plant should be operated according to Prudent Electrical Practice and Prudent Electric Utility Practice
The state minister placed a list of the names of 82 IPP power plants and 32 rental power plants and the amount of money paid to them.
A total of Tk90,000 crore was paid as capacity charges to private power plants over the past 14 years, all of which had to be in dollars, according to a July report by the Implementation, Monitoring and Evaluation Division (IMED).
The power sector in the country was experiencing substantial financial losses, creating a significant subsidy burden on the government because of the model of capacity charge and the indemnity law among other worrisome ailments, the report observed.
It recommended a number of steps to mitigate the situation, including ending capacity charges, closing down energy-unfriendly captive power plants and scrapping the Speedy Supply of Power and Energy (Special Provisions) Act 2010.
