PM endorses electricity distribution through private companies: Energy Minister

Prime Minister Tarique Rahman has given his consent for the potential privatization of the country’s power distribution system, said Minister for Power, Energy and Mineral Resources Iqbal Hassan Mahmood.

The government is moving forward with the plan to appoint only private companies for ensuring efficiency, transparency and the value for money in the power distribution network, the minister said at a conference held in the capital on Wednesday.

He also invited aspiring companies to send their proposals for vetting. The government would retain its control over power generation and wholesale trading, but it cannot do retail business, he added.

If followed through, the plan could see diminishing roles of state enterprises like the DESCO, DPDC, NESCO, REB and others in the power distribution sector.

The minister further said that only the inclusion of private sector could ensure proper bill collection from clients as well as transparency in the overall distribution network.

He drew examples from India, where private companies distribute electricity in big cities like Kolkata, Mumbai and New Delhi.

He also called for allowing private companies to import petroleum products from the international market. Competition in the sector would ease the pressure on the government, he noted.