Tripura trims power export to Bangladesh over dues

Bangladesh's electricity imports from India's Tripura State Electricity Corporation Ltd (TSECL) are facing disruption due to a decrease in supply by the power company over unpaid dues of over Rs100 crore. 

Bangladesh imports 1160 MW of electricity from India through state contracts, with 1000 MW from West Bengal via the Bheramara HVDC Interconnector and 160 MW from Tripura through TSECL. However, TSECL has been supplying less electricity than agreed upon in the contract for nearly a year, said Power Division officials.

The management of imported electricity within the country is overseen by the National Load Dispatch Centre, which is operated by the Power Grid Company of Bangladesh (PGCB).

According to PGCB data, Tripura's TSECL provided 96 MW on 25 May and 84 MW on 24 May. On 23 May, the maximum supply reached 92 MW, while it was 88 MW on 22 May and 90 MW on 21 May. Notably, within the last three months, TSECL's highest recorded power supply in a single day peaked at 132 MW.

TSECL claimed its power dues to Bangladesh totalling over Rs100 crore, leading to a reduction in supply.

"The Bangladesh Power Development Board [BPDB] owes more than Rs 1 crore to TSECL. We are trying hard to make sure that the payment is streamlined but there seem to be some financial issues," Managing Director of TSECL Debasish Sarkar told Indian news agency ANI in a telephone conversation recently.

"We have written letters to the Bangladesh authorities. I have personally met the chairman of the BPDB so that the issues could be resolved as early as possible. The TSECL is also facing tough times financially because of the spiking outstanding amount," he added.

Despite the TSECL claiming it reduced supply due to unpaid bills, Power Division Secretary, Md Habibur Rahman, told TBS on 25 May that outstanding debt has been reduced significantly. Payments are current up to February, and he believes the arrears are not the main reason for the supply disruption.

"Tripura's overall power generation has diminished. They do not have surplus electricity for export beyond their internal requirements. Hence, they reduced the supply. Arrears are not the primary factor here," said the secretary.

BPDB member (distribution) Md Rezaul Karim told TBS, "For some time now, Tripura has been providing less electricity than specified in the contract. They have been averaging between 90 MW to 110 MW in supply over the past few months. Clearing their dues may increase this slightly."

When questioned about potential challenges in load-shedding management due to reduced power from Tripura, he said the supply shortfall is not going to affect load-shedding management.

According to Power Division officials, the BPDB is also facing challenges in timely payments for electricity imports to private and state-owned power companies in India, including Adani Power.

They explained that outstanding balances are accruing due to purchasing electricity at higher rates and selling it at lower prices. The disparity is being offset by government subsidies.

The budget for the current fiscal year allocates Tk39,000 crore for electricity subsidies. Yet, revenue collection below targets impedes timely subsidy disbursement, resulting in BPDB's outstanding payments to electricity suppliers totalling around Tk25,000 crore, as per recent data.

To address this issue, the government is considering adjusting the subsidy by increasing electricity prices. The government is expected to raise electricity prices every three months going forward.