** People rescuing an injured passenger from inside a passenger bus hit by a truck on Dhaka-Mawa Expressway in Shologhar area of Shreenagar upazila in Munshiganj on Thursday. ** Motorcycles allowed on Padma Bridge after 10 months ** Commuters charge extra fare, passengers disappointed ** 78 people killed in Yemen stampede ** Moon sighting committee meets today to ascertain Eid day ** 9 killed in road accidents in 3 districts ** US announces new $325 m military aid package for Ukraine ** Eid-ul-Fitr in Saudi Arabia today ** Eid exodus begins ** LPG price cut illusive ** 15 hurt as bus overturns in capital ** New interbank cheque clearing timings set for Eid holidays ** Four women hit by a train die in Tangail ** 12.28 lakh SIM users left Dhaka on Tuesday ** Sylhet engineer threatened over power outage ** People rush to village homes to spend Eid holidays with their near and dear ones. This photo was taken from Sadarghat Launch Terminal on Tuesday. NN photo ** Surge in cases of dehydration, diarrhoea amid summer heat wave ** Padma Bridge construction cost increases by Tk 2,412cr ** PM gives Tk 90m to Bangabazar fire victims ** Textile workers block highway demanding wage, Eid bonus ** Attack on PM's motorcade Ex-BNP MP, 3 others get life term ** Load-shedding increases for demand of electricity during heat wave ** Motorbikes to be allowed on Padma bridge from Thursday ** 5-day Eid vacation begins from today ** Take Nangalkot train accident as a warning about negligence of govt functionaries **

CPD for ‘no electricity, no payment’ deals

Subsidy burden in energy sector

24 March 2023

Staff Reporter :
The Center for Policy Dialogue (CPD) wants 'no electricity, no payment' agreements with a view to reduceing subsidy burden in the country's energy sector.
It also proposed for cancelling the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 to lessen burden of additional expenditure on government.
The CPD came up with the remarks at a press briefing on "New Renewable Energy Policy-2022 (Draft): Will it be able to meet the goal of clean energy" at its head office in the city on Thursday.
Khandaker Golam Moazzem, Research Director of the CPD, said that future energy and electricity policies should be based on renewable energy policy frameworks.
He also urged the government to move away from the initiative to include coal-based power plants as clean energy by using carbon capture technology in the draft policy on renewable energy.
"The circumstance of the power sector in 2022 is different from the crisis that we faced in 2009. Hence, the speedy energy supply act is no longer needed. This is not just forcing the government to opt for inefficient ways to produce and supply energy, but also putting additional pressure on the customers," he said.Moazzem further said that the aim of inaction of the special provision in 2010 was as effective and urgent measures to enhance the generation and transmission of electricity and energy to ensure an uninterrupted energy supply keeping pace with the domestic demands and for quick implementation of the plan to import electricity and energy from abroad, if necessary, and for implementation of the decisions on urgent extraction and utilization of minerals related to energy.
The tenure of the special provision, enacted in 2010, was extended on several occasions in the past. Later, in September 2021, the cabinet cleared a proposal for the extension of the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010 for another five years till 2026.
Cabinet Secretary Khandker Anwarul Islam, at that  time, said the draft of the Quick Enhancement of Electricity and Energy Supply (Special Provision) (Amendment) Bill, 2021, was approved in order to ensure an uninterrupted supply of electricity and energy for the sake of making Bangladesh into a higher middle-income country by 2030 and a developed country by 2041.
But, the CPD believes the government should move away from such acts immediately in order to give way to competitive structures.
"Electricity sector wastage and its additional cost are being adjusted by passing the burden on consumers creating a huge capacity charge. Adopting a 'No Electricity, No Payment' system would have saved us from paying additional fees," Moazzem observed.
Welcoming the fact that renewable energy is getting the attention of political and government policy makers, he noted that there are deficiencies in the implementation phase.
Calling for further review of the efficiency of energy security and the amount of increased financial burden on the government, he said, "A coordinated energy and power system depends on the transparency and efficiency of contracts in the power sector".

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