The old proverb ‘a stitch in time saves nine’ seems highly relevant to the ongoing conflict between the Bangladesh Rural Electrification Board (REB) and the Palli Bidyut Samities (PBSs) over rural electricity supply.
This is not the first time such disputes have surfaced in Bangladesh.
Too often, problems are allowed to linger instead of being resolved.
Bureaucrats and political actors have long been accused of deliberately turning issues into crises to benefit from ‘crisis management.’ Likewise, the growing conflict between REB and PBS has now reached a stalemate.
Both sides REB as regulator and coordinator, and PBS officials are blaming each other. PBS officials argue that while they are responsible for delivering electricity to rural areas, most of the risky fieldwork is handled by contract staff. Permanent employees, they claim, face rank discrimination.
Their biggest grievance, however, is that procurement authority rests with REB.
According to PBS, REB overspends on low-quality products, which often cause system failures yet PBS is blamed when things go wrong.
REB rejects these allegations.
It insists that all purchases are made through competitive bidding in line with technical standards.
It also maintains that PBS staff were hired under a defined structure that cannot now be altered.
Instead, REB accuses PBS officers and staff of committing a grave offense cutting off electricity supply during their protests over the past year.
To stop this, REB argues, it had no choice but to pursue legal action.
The question arises: Was this crisis unknown to the Power Division?
Certainly not.
Every detail was known. Yet the division has not taken concrete action to resolve it.
Many observers note that since two consecutive Power Division secretaries were promoted to principal secretary, and because the Prime Minister herself has held the power portfolio, a kind of dual governance has persisted.
As a result, when PBS officials first demanded in January 2024 that their positions be given parity with REB staff, the issue was left to committee formation and not pursued further.
After the fall of the Awami League government amid mass protests, PBS officers and staff launched fresh demonstrations.
They faced harsh criticism for power cuts, were charged with sedition, dismissed, and subjected to mass transfers.
This has put PBS at odds with both REB and the Power Division.
Most recently, PBS declared a mass leave program, but withdrew it following a warning from the energy adviser, who urged patience and assured that the government was working sincerely to resolve the dispute.
US Model of Rural Electrification in Bangladesh Article 16 of Bangladesh’s Constitution guarantees citizens the right to electricity and energy.
But in the mid1970s, electricity was still considered a luxury even in urban life, with less than 15% of the population having access.
At that time, the U.S.
Government offered support to expand access to rural areas. With USAID assistance, the US-based National Rural Electric Cooperative Association (NRECA) began discussions in 1976 to replicate the American cooperative model in Bangladesh.
Until then, rural electrification was managed by the Rural Electrification Wing of the Bangladesh Power Development Board (BPDB).
In 1977, through a Presidential Order, this wing was dissolved, and the Bangladesh Rural Electrification Board (BREB) was created.
The order directed the new board to supply electricity to rural areas through cooperatives modeled after NRECA.
In 1978, 13 PBSs were formed, including what is now Dhaka PBS-1.
On June 2, 1980, electricity was first supplied to Kamalpur village in Dhamrai Upazila, Manikganj.
At the time, BPDB still handled distribution, but revenue collection and system losses were major challenges losses were as high as 70% in some areas.
From the start, PBSs focused on revenue collection and loss reduction.
Managed by consumer-elected committees, PBSs operated outside the conventional utility framework in Bangladesh.
All PBS assets are owned by their members the consumers themselves.
Today, the number of PBSs has grown to 80.
Of these, 12 are profitable, while the others rely on cross-subsidies. Currently, PBSs supply more than 60% of all electricity in Bangladesh, enabling 100% rural electrification. With rising rural living standards, demand has surged.
As of April, peak demand in PBS distribution areas reached 10,541 MW.
The REB-PBS Crisis By law, REB staff are government employees, while PBS staff work under cooperative rules.
REB employees follow the government pay scale, while PBS salaries are higher. PBS officials from Assistant General Manager (AGM) upward are transferable, but lower-level staff are not a rule that has not been applied consistently.
Moreover, ranks from AGM to GM are technically transferable, but their equivalence with REB positions is unclear.
As a result, many senior PBS officials must work under REB juniors.
Investigations show that the status of a PBS General Manager (GM) is undefined.
REB informally claims that a GM is equivalent to a company director, but this is not backed by any official circular. PBS officials argue instead that a Senior GM should equal an Additional Chief Engineer in other power companies; a GM, a Superintendent Engineer; a DGM, an Executive Engineer; and an AGM, an Assistant Engineer. Despite years of petitions, REB has shown little interest in resolving the issue.
REB-PBS Operational Relationship REB controls about 80% of infrastructure procurement, funded mainly by donor loans.
The government borrows from donors at 0.75% interest, lends to REB at 2%, and REB, in turn, lends to PBS at 3% after procurement. PBS directly manages the remaining 20% of procurement with its own funds, often by pooling resources with two or three PBSs.
Allegations of corruption are widespread in REB’s large-scale procurement. PBS claims that REB often procures substandard equipment and forces it on them.
Another flashpoint is cross-subsidies. Profitable PBSs send funds to REB, which then redistributes them to lossmaking PBSs after deducting loan repayments. PBS officials argue that profitable societies should directly subsidize weaker ones to avoid irregularities.
Movement Ongoing, Program Suspended PBS’s movement has stretched nearly 19 months, beginning in January 2024 with a memorandum. During the interim government, they escalated to work stoppages, even cutting electricity supply in some areas a move widely condemned.
REB retaliated by charging 33 people with sedition, dismissing staff, and enforcing mass transfers. What began as one demand eventually grew to seven. Last year, PBS staged a sit-in at Shaheed Minar for nearly two weeks. Negotiations led to agreements to withdraw cases, reinstate dismissed staff, return transferred employees, and form two committees to consider whether PBS should merge with REB or be corporatized.
Following this, the protests paused.
In January and April this year, the rural electrification association submitted memorandums, signed by 28,307 employees, to the energy adviser demanding withdrawal of cases, reinstatement of dismissed workers, resignation of the REB chairman, a uniform service regulation through merger or restructuring, and regularization of contract staff.
They alleged that REB sought to rearrest those already out on bail, prompting renewed protests, including a mass leave program. Power supply was disrupted in some areas.
But after warnings and assurances from the adviser, the association suspended the strike and asked staff to return to work. Protester’s Charter of Demands The protesters have continued to press seven demands, the central one being the merger of PBS with REB: 1.
Removal of the REB chairman, accused of destabilizing PBS through repressive measures. 2.
Merger of REB and PBS under a uniform service regulation, or restructuring in line with other power distribution entities. 3.
Regularization of meter readers, line workers, and dependent employees. 4. Withdrawal of ‘false’ cases and reinstatement of dismissed staff. 5. Cancellation of punitive transfers and restoration of affected workers. 6.
Implementation of fixed working hours and urgent recruitment to fill staff shortages. 7.
Formation of an interim board to oversee PBS operations until reforms are completed. Press Conference by the Energy Adviser On September 11, Power, Energy and Mineral Resources Adviser Muhammad Fouzul Kabir Khan urged protesting officials to return to work or face legal action.
He warned, ‘Those who refuse to return despite the government’s call will face strict measures.
If necessary, alternatives will be arranged to keep rural electricity running.
Thousands are willing to step in.’ He acknowledged that some demands were reasonable but suggested that ‘anti-election elements’ might be exploiting the movement.
He stressed the government’s willingness to discuss solutions but insisted that protests disrupting service were unacceptable.
The adviser said that, according to committee findings, 3,029 transfers had taken place, some routine.
Already, 803 staff had been reinstated.
He added that while many employees wanted to return to work, some were being obstructed. Legal measures were underway, including three General Diaries filed.
He also confirmed that the government was considering turning PBS into companies, though this required legal and regulatory reforms.
Meanwhile, a seven-member committee was investigating procurement corruption. Conclusion Resentment in the rural electrification system is reaching a breaking point.
Both REB and PBS remain entrenched. CAB’s energy adviser, Professor Shamsul Alam, believes the scope for negotiation has narrowed due to the Power Division’s inaction.
He warns that forming regional companies under which PBS would operate would only worsen the crisis by reducing staff and pressuring tariffs upward.
He arguesinstead for a merger of REB and PBS. CAB has even filed a case in court.
Analysts, however, believe time is needed.
They recommend resolving the issue within a defined period by withdrawing cases and reviewing grievances, whileREBandPBSwork towarda compromise.
Everyone agreesthe current impasse is unsustainable.
If unresolved, rural electricity supplywillfacemajordisruptions, undermining quality service and national goals.Yet,withelectionslooming in February, a senior Power Division official privately admitted that the interim government is unlikely to act.
Experts argue that the only path forward is dialogue addressing legitimate demands while setting aside the contentious merger issue.
But this will require flexibility from both REB and PBS, and, most importantly, leadership from the Power Division.