Govt to Slash Tariffs of 6 State Power Plants

Power tariffs of half a dozen of the state-owned power plants are set to be cut years after initiation of their commercial operations, said sources.

the proposed new tariffs are expected to get approved by the Advisers Council Committee on Economic Affairs as state-run Bangladesh Power Development Board (BPDB), the lone buyer of electricity from these plants, has already negotiated down the tariff rates of these power plants, they said.

the power-purchase agreements (PPAs) between the BPDB and the relevant power plants will also be amended accordingly.

the return on investments (ROEs) of those power plants might be fixed at 6.0 per cent from existing 12 per cent and the tariff rates would also be reduced proportionately, a senior BPDB official said.

of the six power plants — four are owned by state-run Rural Power Company Ltd (RPCL) and two are owned by another state-owned BR PowerGen Ltd.

the RPCL-owned units are: 210MW Mymensingh Power Plant, 52.194MW Kodda Power Plant, 25.50MW Rowzan Power Plant and 105MW Gazipur Power Plant.

and two other plants –163MW Mirsharai Power Plant and Kodda 150MW Power Plant – are owned by BR PowerGen Ltd.

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