The Centre for Policy Dialogue (CPD) has called for the immediate repeal of the "Quick Enhancement of Electricity and Energy Supply (Special Provision) Act" to remove the capacity charge provision, which has exacerbated challenges in the power sector by driving up huge subsidies.
The think tank also urged for amendments to the Bangladesh Energy Regulatory Commission (BERC) Act, a revision of the energy and power master plan, the formulation of a national energy policy, the enactment of an Energy Conservation Act, the implementation of energy audits, and the introduction of competitive bidding for electricity procurement to address the immediate challenges facing the power and energy sector.
These recommendations came on Sunday from a media briefing titled “Reform of the Power and Energy Sector: CPD's Recommendations” arranged at the office of the CPD in the capital.
Dr Khondaker Golam Moazzem, Research Director of the CPD presented a set of 17 reform recommendations for the sector while presenting the keynote at the event.
He also proposed that the interim government should present a 100-day roadmap for the power and energy sector, with a focus on energy transition, where the proposed measures will be reflected.
Golam Moazzem said, several important development projects are ongoing, despite various irregularities in the power sector under the previous government. It is crucial for the interim government to continue the implementation of the development initiatives.
In addition to repealing the special law for quick rental power purchases, he emphasised that the Bangladesh Energy Regulatory Commission (BERC) should be allowed to operate independently to enhance accountability in the energy and power sector.
He also called for leadership changes in various organisations within the sector and stressed that the sustainable energy transition should prioritise the use of renewable energy over fossil fuels.
He also recommended rationalising the future demand of the electricity and said that, the demand for electricity might reach 27,000 MW by 2041, and the capacity should be maximum 35,000 MW with a reserve margin.
However, the power sector master plan has set a target of 58,000 MW, which he believes is unreasonable and should be revised, he added.
To capitalise on additional targets, he said, the private sector might create pressure for additional investment to develop infrastructure such as LNG facilities and coal imports.
Furthermore, the financial reports of various entities in the power and energy sector, including the Bangladesh Power Development Board (PDB), Bangladesh Petroleum Corporation (BPC), and RPGCL, need to be re-examined, he added.
Golam Moazzem also highlighted that under a "No Electricity, No Pay" contract, subsidy pressures would be reduced, ensuring that customers are not burdened with additional costs.
