Electricity tariffs of three state-run power plants revised downwards

In a move aimed at reducing public expenditure on electricity procurement, the interim government has revised the tariffs of three state-run gas-based power plants in Ashuganj, Siddhirganj, and Haripur.

The officials concerned are expecting annual savings of about Tk119.06 crore through this pragmatic move.

The approvals were given at a recent meeting of the Advisers’ Council Committee on Government Purchase held at the secretariat.

According to the Power Division, the tariff rationalisation initiative is part of the government’s broader effort to ensure more efficient use of public funds, reduce the financial burden of power purchases on the Bangladesh Power Development Board (BPDB), and improve overall fiscal discipline in the energy sector.

The committee approved the proposal to re-determine the levelised tariff of the 412MW Haripur Combined Cycle Power Plant operated by the Electricity Generation Company of Bangladesh Limited (EGCB).

Under the revised structure, the tariff has been reduced from Tk4.7796 to Tk4.7588 per kilowatt-hour, which will come into effect from August 2025.

Once implemented, BPDB is expected to save around Tk36.68 crore annually from electricity purchases from the plant.

The Haripur plant currently supplies about 305.33 crore units of electricity each year, for which BPDB pays nearly Tk1,453.01 crore annually.

Over the remaining contract tenure of 13 years, 8 months and 5 days, BPDB will have to pay an estimated Tk19,864.12 crore for electricity from this facility.

EGCB is a government-owned generation company, with 95.80% ownership under the Power Division and 4.20% held by BPDB.

Any profit generated by the company is treated as government revenue, making cost optimisation within such plants directly beneficial to the public exchequer.

The committee also approved a proposal to revise the tariff of the 335MW Siddhirganj Combined Cycle Power Plant, also operated by EGCB.

Following the revision, the tariff has been reduced from Tk5.5216 to Tk5.4204 per kilowatt-hour, effective from August 2025. The adjustment is expected to save BPDB approximately Tk63.13 crore annually.

The plant currently produces around 248.27 crore units of electricity each year, with BPDB spending about Tk1,345.70 crore annually to procure power from the facility.

Over the remaining contract period of 16 years, 1 month and 9 days, BPDB’s total payment obligation is estimated at Tk21,675.03 crore.

In another decision, the committee approved the re-determination of the levelised tariff for the 450MW Combined Cycle Power Plant operated by Ashuganj Power Station Company Limited (APSCL).

The tariff has been reduced from Tk5.7844 to Tk5.7634 per kilowatt-hour. With the revised rate, BPDB is expected to save around Tk19.25 crore annually.

BPDB currently pays approximately Tk1,593.17 crore each year to procure electricity from this plant. Over the remaining contract tenure of 14 years, 11 months and 22 days, total payments are projected to reach about Tk23,880.02 crore.

APSCL is also a government-owned power generation entity, and its earnings are treated as state revenue.

Officials said the combined tariff revisions for the three plants will result in significant annual savings for the government while maintaining an uninterrupted electricity supply from reliable, gas-based facilities.

They noted that since the plants are operated by state-owned companies, the revised tariffs strike a balance between ensuring the financial sustainability of the generation companies and reducing BPDB’s expenditure.

The move is seen as part of the interim government’s broader strategy to rationalise energy costs, curb subsidy pressures, and safeguard public money through more efficient procurement decisions.