The Power Division has sought over Tk 23.19 billion as subsidy from the government against the state-run Bangladesh Power D e v e l o p m e n t Board’s (BPDB) tariff deficit to help ensure u n i n t e r r u p t e d power supply across the country, official sources said.
the BPDB sustained the tariff deficit on account of selling electricity to the bulk consumers at lower rates than that production/purchasing costs, they mentioned.
in a letter, the Power Division under the Ministry of Power, Energy and Mineral Resources has recently requested the Finance Division to take necessary steps to urgently allocate the said amount of fund as subsidy in favor of the BPDB.
usually, the BPDB procures electricity from the independent power producers (IPPs) and rental power plants. Apart from that, it also imports electricity from India at higher prices, officials said.
the government owes a sum of Tk 33.43 billion to the BPDB in subsidy until August last on account of selling electricity at lower prices than its procurement or production costs.