Trade

CAB Unveils 13-Point Energy Reform Plan

Consumer body urges cost-based tariffs, renewables push and end to fossil fuel expansion

Written by The Banking Post


The Consumers Association of Bangladesh (CAB) has placed a sweeping 13-point demand to address what it described as a deepening energy crisis driven by policy failures and weak accountability, urging political parties to reflect the proposals in their election manifestos.

The demands were announced at a press conference in Dhaka, where CAB leaders said the crisis is not simply a result of global price volatility but stems from long-standing structural flaws in the management of the power and primary energy sectors.

CAB’s energy adviser said electricity and fuel supply should be treated as essential public services rather than profit-driven businesses, arguing that commercialisation has pushed up costs for consumers and undermined energy security. The organisation called for restoring the sector’s service-oriented character and replacing profit-based pricing with strictly cost-reflective tariffs.

A central demand is a gradual reduction in import dependence. CAB proposed cutting fossil fuel imports by at least five per cent over the next five years through stronger energy efficiency and conservation measures, warning that heavy reliance on imported LNG, coal and oil has exposed the economy to global shocks, drained foreign exchange reserves and fuelled inflation.

Renewable energy expansion forms a key pillar of the proposal. CAB urged an average 15 per cent increase in power generation over the next five years through continuous growth in solar energy, while treating solar development as a small and medium industrial sector to generate jobs and ease pressure on imported fuels.

The organisation also took a firm stance against further fossil fuel expansion. It demanded a five-year moratorium on LNG import expansion and a complete halt to new coal-fired power capacity, calling instead for full utilisation of domestic gas resources. CAB proposed 100 per cent onshore gas exploration and production by state-owned and local companies, financed through the Gas Development Fund and carried out transparently.

It also called for an action plan to tap unused gas reserves in Chhatak (East), Bhola and the southern regions, which it said could help ease supply constraints if developed properly.

On contracts and governance, CAB urged the cancellation of what it termed unequal and harmful agreements, including a power import deal with an Indian conglomerate. It also demanded repeal of the Speedy Supply of Power and Energy Act, arguing that the law has enabled opaque deals and costly rental and furnace-oil-based power plants that should be phased out.

Accountability featured prominently in the demands. CAB called for recovery of state losses caused by unlawful contracts and prosecution of those involved in corruption in the energy sector, whom it described as energy offenders.

The organisation also raised concerns over the LPG market, which it said is dominated by a few private operators. CAB proposed breaking market concentration by opening import licences to competition, revoking the authority of the LPG operators’ association, and building state-owned LPG terminals, refineries and storage facilities to cover at least half of national capacity.

To strengthen regulation, CAB urged swift resolution of its complaints against the energy regulator and adoption of proposed amendments to the regulatory law. It reiterated the need for a people-focused energy transition guided by its proposed Energy Transition Policy 2024.

CAB also cautioned against joining the Energy Charter Treaty, arguing that it prioritises international fossil fuel interests over national policy space.


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