The monthly loss of Power Development Board (PDB) will increase from Tk 70 crore to Tk. 112 crore when it starts to purchasing 300MW power from eight rental power plants.
Recently, PDB submitted a proposal to the Energy Regulatory Commission (ERC) last month to enhance the present power tariff by 41 percent, which, if done, will help it reach a break—even point.
The board is seeking subsidy from the finance ministry through the power ministry to offset the loss caused by the government—controlled low power sales tariff over a higher production rate.
Around Tk. 50 crore loans is given to PDB monthly from finance ministry to minimize the impact of its losses.
The PDB earned Tk. 5,200 crore during the last fiscal year, which is 19 percent higher that that of the pervious fiscal year.
But PDB’s average billing is Tk. 2.37 per kilowatt—hour (or an unit) against an average supply cost of Tk 2.82 a unit, which forces it to incur a loss of 45 paisa per unit. The loss totals up to Tk. 70 crore a month now.
When the eight rental power plants to come into operation, the PDB will incur a further loss of Tk. 42 crore because of these plants’ high cost of per unit electricity.
The best suggestion government can take is to just increase the rate per unit or urge these eight rental power plants to decrease their cost of production per unit.
Recently, PDB submitted a proposal to the Energy Regulatory Commission (ERC) last month to enhance the present power tariff by 41 percent, which, if done, will help it reach a break—even point.
The board is seeking subsidy from the finance ministry through the power ministry to offset the loss caused by the government—controlled low power sales tariff over a higher production rate.
Around Tk. 50 crore loans is given to PDB monthly from finance ministry to minimize the impact of its losses.
The PDB earned Tk. 5,200 crore during the last fiscal year, which is 19 percent higher that that of the pervious fiscal year.
But PDB’s average billing is Tk. 2.37 per kilowatt—hour (or an unit) against an average supply cost of Tk 2.82 a unit, which forces it to incur a loss of 45 paisa per unit. The loss totals up to Tk. 70 crore a month now.
When the eight rental power plants to come into operation, the PDB will incur a further loss of Tk. 42 crore because of these plants’ high cost of per unit electricity.
The best suggestion government can take is to just increase the rate per unit or urge these eight rental power plants to decrease their cost of production per unit.
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