Austerity saves fuel oils, but low rain ups electricity use

• Sreda's weekly power consumption in Aug 1,599kWh, down from July's 2,610kWh 
• Petrobangla works on saving 20% electricity at its Dhaka headquarters 
• Other public and private offices say their fuel bills in August also fell
• Aug liquified gas imports dropped to Tk2,823cr from July's Tk2,952cr 

Bangladesh's fuel oil and liquefied natural gas consumption fell significantly following the government's austerity measures in phases since June, but power use mismatched with the belt tightening, show data.

With the initial measures such as using an energy-efficient lighting system, maximum use of daylight and running air conditions not below 26°C, public offices report reducing weekly power consumption up to 54% in August compared to the previous month.

For example, the Sustainable and Renewable Energy Development Authority (Sreda), a wing of the Power Division, was able to reduce its energy consumption cost by 39%-54% in August.

According to Sreda's power consumption monitoring report, the organisation used 1,599kWh of electricity – equivalent to a bill of Tk14,807 – in the first week of August. But the power use was 2,610kWh, or Tk24,169, in the last week of July.

Similarly, the Bangladesh Oil, Gas and Mineral Resources Corporation – widely known as Petrobangla – said it had been able to curtail the electricity consumption at its corporate office at Karwanbazar in Dhaka.

Petrobangla Chairman Nazmul Ahsan told The Business Standard that they plan to widen power saving up to 20%.

Apart from electricity, public and private offices said they reduced liquid fuel consumption in August in line with the government's austerity measures.

In the wake of a volatile global energy market coupled with a US dollar shortage, the government suspended liquified natural gas imports from the open market. The suspension led to hurting the gas-based electricity generation forcing the authorities to introduce scheduled blackouts across the country to save power.

On 5 August, prices of all fuel oils were raised to historic high as diesel-fed power plants were shuttered. To provide a relief to the fast-depleting forex reserve, the government further tightened the belt on 24 August by introducing a new and curtailed office hours to save power.

A two-day weekend was also introduced for the educational institutes.

These initiatives altogether saved the government Tk128 crore in August for liquefied natural gas import compared to previous month.

As per Petrobangla, August liquified gas imports dropped to Tk2,823 crore from July's Tk2,952 crore.

Reduced consumption and record high prices dragged down the fuel oil sales to 6.28 lakh tonnes in August from 6.39 lakh tonnes in July, according to sources at the Bangladesh Petroleum Corporation.

Apart from diesel, consumption of octane, petrol, furnace and jet fuel dropped significantly, said the sources.

Low rainfall dampens power plan

Despite the scheduled power outages in line with the austerity plan, August electricity consumption in Dhaka rose compared to July, show distribution data.

Dhaka Electric Supply Company Limited (Desco) officials said power consumption increased by 5.33% to 65.59 crore kWh in August from that of 62.27crore kWh in July.

Another power supplier of the capital Dhaka Power Distribution Company Limited (DPDC) also witnessed a surge in demand in August compared to previous month.

Desco officials attributed the record low August rainfall to the spiked power demand, as people digested more electricity to run air conditions and fans.

Still, Desco Managing Director Md Kausar Ameer Ali credited the austerity measures to suppress power hunger.

"If the austerity measures were not in place, the demand could grow 15%-25% in August," he told TBS.