Written by The Banking Post
The Power Division has sought over Tk 23.19 billion in subsidies from the government to cover the tariff deficit of the Bangladesh Power Development Board (BPDB) and ensure smooth power supply nationwide, according to official sources.
Officials said the BPDB continues to incur losses as it sells electricity to bulk consumers at rates lower than production or purchase costs.
In a recent letter to the Finance Division, the Power Division under the Ministry of Power, Energy and Mineral Resources urged an urgent fund allocation in favour of BPDB to help maintain the country’s power supply chain.
The BPDB purchases electricity from independent power producers (IPPs) and rental power plants, in addition to importing electricity from India at higher rates.
As of August 2025, the government owes BPDB around Tk 33.43 billion in unpaid subsidies due to the tariff gap. Of this, a proposal to release Tk 10.25 billion in dues for eight power plants is currently awaiting approval from the Cabinet Committee on Government Purchase (CCGP).
For the 2025–26 fiscal year, the government has earmarked Tk 350 billion as a total power subsidy allocation.
According to officials, this financial support is crucial for BPDB to settle monthly payments to IPPs and rental power firms and to make advance payments to the Bangladesh Petroleum Corporation (BPC) to secure fuel supply for power generation.
The Power Division’s letter emphasized the need to ensure adequate fuel oil and coal supplies to maintain uninterrupted electricity generation during the ongoing summer.
“Power producers have repeatedly requested timely payment of their outstanding electricity bills,” said an official, noting that the delay in subsidy disbursement risks disrupting electricity production and supply.
