Subsidy to be provided for another 5-7 years in power sector: Nasrul

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PV Desk : The present government will provide subsidy in the power sector for another five to seven years to enable the lifeline customers to be able to pay the fixed electricity bills during this period.

State Minister for Power and Mineral Resources Nasrul Hamid disclosed this today while addressing as the chief guest a function on “Bangladesh Power Conclave 2018” at a local hotel.

PwC, Bangladesh organized the function marking the “Release of Thought Leadership Paper-Transforming the Bangladesh Power Sector” in association with Bangladesh Independent Power Producer Association (BIPPA).

Nasrul Hamid said electricity is being given to the lifeline customers at a minimal price, adding, “It is necessary to produce power at a cost effective price aimed at coming out from the subsidy. “For this we are entering into using of coal, nuclear and LNG for electricity,” he said.

“If power generation costs go down, then we will come out from the subsidy. We are now focusing on distribution line as 20 percent electricity demand is increasing in the city, while difference between town and village are reducing,” he added.

The state minister said the transmission and distribution systems are becoming a big challenge along with power generation, adding, “Price of land is high, even required land is not available for the sub-station.”

He said a large number of private companies have been working in the power sector and they are generating electricity. “The government is thinking to prepare a guideline for private transmission system to install private transmission line on test basis, Nasrul said.

Regarding private distribution system, he added that the Palli Bidyut Samity of BREB (Bangladesh Rural Electrification Board) is giving power connection similar to private companies.

The participants discussed various challenges of tax policy, investment, primary energy and other relevant issues including regulation, financing and technology of the power sector.

Among others, Power Division Secretary Dr Ahmed Kaykaus, Chairman of BPDB Khaled Mahmood, BIPPA President Latif Khan, Sabbir Ahmed of National Board of Revenue, IFC Senior Economist Mashroor Riaz, PwC Managing Partner Mamun ur Rashid, Standard Chartered Bank Chief Executive Officer (CEO) Nasser Ejaz, Director General of Power Cell Engineer Mohammad Hossain and Energy Expert M Tamim spoke in the panel discussion.