As much as one-fourth of the subsidy allocations go to the power sector, which, in turn, channels the maximum portion to capacity payments for the power plants, according to the Centre for Policy Dialogue.

"The burden for such payments is skyrocketing, which is difficult to accommodate even with subsidies," it said, adding that the financial condition of Bangladesh Power Development Board (PDB) is deteriorating over the years as a result of the rising generation capacity.

Capacity payments are supposed to be paid by the government to the private-owned power plants based on the plant's capacity and establishment costs. It impacts the per unit price of electricity as the power plants get the minimum payment even if the plants do not produce electricity.

In fiscal 2021-22, PDB's operating loss stood at Tk 27,477 crore in contrast to Tk 6,200 crore in fiscal 2017-18 due to escalating capacity payments to the privately owned power plants.

"PDB is slowly becoming a white elephant," said Khondaker Golam Moazzem, research director of the CPD, while presenting the keynote paper at a dialogue styled "Addressing Power and Energy related Challenges: Proposed Measures in the National Budget FY 2023-24".

The government is increasing the electricity generation capacity without any proper planning, he said. In the absence of a corresponding increase in distribution capacity, as much as 50 percent of the generation capacity is sitting idle and raking in capacity payments along the way.

At present, the generation capacity is 24,143MW but the highest production yet was 15,648 MW.

"The government did not take lessons from the ongoing crisis and is moving in the wrong direction," Moazzem said, citing the ongoing plan of setting up 6,218MW new power generation capacity by 2025 to further his point.

The proposed budget is hardly addressing the major challenges; rather, it is a business-as-usual budget for the power and energy sector, he said.

"The IMF (International Monetary Fund) conditionality for subsidy management only through price adjustment faultily passes the burden to the consumers. This subsidy management needs to be done through a gradual phasing out of capacity payment," Moazzem added.

The ongoing crisis is the crisis of energy or fuel, said Ijaz Hossain, a former professor at Buet's department of chemical engineering.

And yet the government is increasing allocation in the power sector, which is only expanding the capacity.

"The private power plants are getting a sovereign guarantee from the government to get the capacity payments even if they don't buy electricity from that power plant. Then why would an investor not invest to build a plant?" he asked.

Power plants are being built without any guarantee of supply of fuel or gas from state-owned companies.

Some plants have finished construction but they are yet to get a gas connection, so are sitting idle.

"Such decisions might be illegal," he added.

Due to the price hike of electricity, fuel and gas, inflation is spiralling, said M Shamsul Alam, vice-president of the Consumers' Association of Bangladesh.

"All such predatory expenses are being taken from the people."

The country has also become an "import market" for energy products, said Alam, also the dean of Daffodil International University's faculty of engineering.

He cited the electricity import from India's Adani Power, the transboundary transmission line, and the liquefied natural gas and coal imports at a high cost.

"This is putting the burden at the consumers' end," he added.

The gas crisis is manmade and intentional, said Badrul Imam, honorary professor at the University of Dhaka's department of geology.

"It is created to increase the LNG import and earn some money illegally," he added.

Many industries are facing acute gas shortages now, said Mostafa Azad Chowdhury, vice-president of the Federation of Bangladesh Chambers of Commerce and Industry.

"We have contacted the authority. They said they are rationing gas for the power sector, which is the main reason for the shortage experienced by industries."