We agree with the power adviser
We are pleased to note that the interim government has decided to terminate agreements with power plants that have been collecting capacity charges without producing electricity. In an interview with this daily, Muhammad Fouzul Kabir Khan, who currently oversees three ministries under the interim government, said that this decision was made in the public interest—a sentiment we fully support. For years, we have voiced concerns about the previous government's costly decision to pay idle power plant owners through capacity charges, wasting significant taxpayer funds and channelling resources into the hands of individuals politically connected with the former Awami League regime.
The adviser expressed his surprise at how a five-year agreement was extended to 16 years. He also revealed that a network of corruption had developed within the power sector, rooted in the structure of the Quick Enhancement of Electricity and Energy Supply Act of 2010. This indemnity law, originally intended to provide short-term relief from power shortages, ultimately became a permanent arrangement. As a result, decisions made under this act lacked proper scrutiny, enabling one-sided benefits for power plant owners at the expense of public interest. According to some estimates, from 2009 to the fiscal year 2023-24, Tk 1,37,000 crore has been paid for capacity charges or rentals without utilising the production capacity. Clearly, the country could ill afford such waste. And even our current economic predicament can, to a large extent, be attributed to this. Which is why the decision by the interim government to not extend any agreement with such power plants was extremely necessary.
For all latest news, follow The Daily Star's Google News channel. Furthermore, according to the adviser, such criminal networks have also established themselves in other sectors of the country. This is what made the Awami League's megaprojects—undertaken without proper consideration of their true benefits—so costly for the public. Such corruption has made nearly all public projects much more expensive than they should have been, while simultaneously creating a corrupt culture that is proving difficult to change.
Despite the enormity of the task of rooting out such corruption, it is essential for the current government to reform these sectors urgently. Given the economic constraints that Bangladesh already faces, it cannot afford to continue losing such exorbitant funds to corrupt practices.
In line with that, while the government's decision not to pay capacity charges is a positive step, it should go further and repeal the power indemnity law that has drained the economy. The government should also amend the regulatory commission law to restore its right to hold meaningful public hearings before any increase in energy prices. At the same time, the commission should work to eliminate inefficiency and corruption to ensure an uninterrupted energy supply without any further unjustified price increases.
Comments