Govt to save Tk 119 crore a year thanks to power purchase rate cuts

The government will save around Tk 119 crore annually in electricity purchases thanks to a reduction in tariff rates by 10 to a maximum of 21 paisa per kilowatt for three public-sector plants.

The revised tariff rates were approved at a meeting of the advisory committee on government purchases held on February 3.

Among these, the 450-megawatt Ashuganj Combined Cycle Power Plant (2012), approved under a 25-year contract, will have its tariff rate reduced by 21 paisa to Tk 5.76 per kilowatt for the remaining 15 years.

As a result, the Power Development Board’s electricity purchase cost from this plant will decrease by Tk 19.25 crore annually, requiring payments of Tk 1,593 crore per year.

Meanwhile, the 335-megawatt Siddhirganj Combined Cycle Power Plant, which began production in 2019, will have its tariff rate reduced by 10 paisa to Tk 5.42 per kilowatt. This will save Tk 63 crore annually for the next 16 years.

In addition, the 412-megawatt Haripur Power Plant of the Electricity Generation Company, established in 2014 with financial assistance from the Japan International Cooperation Agency, will have its tariff rate reduced by 21 paisa to Tk 4.75 per kilowatt.

This will save Tk 37 crore annually for the remaining 14 years of its contract period.