The interim government will not increase power tariffs despite a recommendation from the International Monetary Fund (IMF), said Power and Energy Adviser Dr. Fouzul Kabir Khan on Thursday. "We will not raise power tariff despite IMF’s suggestion," Dr. Fouzul told reporters after a meeting with an IMF delegation at the Finance Ministry. The delegation, led by IMF Mission Chief to Bangladesh Chris Papageorgiou, held a meeting as part of the IMF’s third review under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). Finance Adviser Dr. Salehuddin Ahmed and Dr. Fouzul were present during the discussions. Govt prioritises timely textbook distribution: Education Adviser The energy adviser explained that while the IMF recommended a tariff hike to ease the subsidy burden in the power sector, the government emphasized the adverse effects such a move would have on citizens already grappling with high inflation. The government is focusing on reducing subsidies by cutting production costs in the energy sector, the adviser said. Old, polluting buses in Dhaka to be scrapped to combat air pollution: Rizwana He also highlighted several reforms aimed at improving efficiency and transparency in the power sector. The government has repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act, 2010, and removed bureaucrats from the boards of directors in various power companies, he noted.

The Centre for Policy Dialogue (CPD) on Sunday called for discontinuation of the Speedy Supply of Power and Energy (Special) Act 2010, scheduled to expire in next October, in the interest of the country’s power and energy sector. “We apprehend, if it continues, it would create room for corruption, reduce scope for competition and increase non-transparency in the project implementation process”, said Dr Khondaker Golam Moazzem, Research Director of the think-tank said at a webinar presentation on “Power Sector in the National Budget for FY 2021-22: Perspective on Allocative Priorities & Reform Agenda.” Read: CPD dialogue calls for urgent cash transfers to COVID-hit households The law is supposed to expire on October 10 this year, he said. The virtual seminar was organized by the CPD with its Chairman Prof. Rehman Sobhan in the chair. It was addressed by energy expert and BUET teacher Prof. Dr M Tamim, Sustainable and Renewable Energy Development Authority (Sreda) Chairman Mohammad Alauddin, Power Cell Director General Mohammad Hossain, IDCOL Managing Director Mahmud Malik, Bangladesh Independent Power Producers Association (BIPPA) President Imran Karim and Mini-grid power plant operator Mojibur Rahman. Executive Director of CDP Dr Famida Khatun moderated the discussion. Dr. Golam Moazzem said the law was enacted targeting special needs in 2010. He said Bangladesh’s energy and power sector now needs to shift its activities from ‘emergency management to ‘market-led’ management and it needs to improve its transparency, accountability and efficiency. He noted that the power and energy sector received an allocation of Tk. 27,484 crore in which power got Tk 25398 crore and energy got Tk 2086 crore  with 62 per cent of the focus on generation. Read: Budget lacks clear outline to protect lives, livelihoods: CPD It now needs a shift in allocation more on transmission and distribution from generation, he said. The CPD suggested increasing budget allocation for renewable energy saying that financial incentive should be further widened in the sector. Foreign direct investment (FDI) in renewable energy should be facilitated by making the domestic business environment favourable including making the businesses viable and de-risking, he added. The power sector should be made competitive and all types of bidding should be held under ‘open bidding’ system maintaining transparency’, he added. Dr M Tamim said there is a huge gap between the government’s figure of power generation capacity and the real scenario. “We have actual deliverable capacity is 14,000 MW while the maximum generation capacity is 18,000 MW”, he said, adding, the statement about the 23,000 MW is a political propaganda.   Read: CPD finds much in budget out of touch with reality He said Bangladesh should adopt its own model based on an appropriate technology to address its energy problem instead of following any other country’s model.  Mahammad Alauddin said the government is preparing a Delta Plan where the country’s renewable energy generation target was set at 30,000 MW by 2041. Mohammad Hossain said the government is now trying to shift its focus on development of transmission and distribution lines from its current focus on generation.