Interim Rule Leaves Energy Sector Vulnerable

With the National Election scheduled for February 12, 2026, Bangladesh has formally entered election mode. Political activity is set to intensify, public debate will sharpen, and expectations from the next government are already taking shape. Amid this transition, attention is increasingly turning to what the interim government leaves behind, particularly in sectors critical to economic stability and long-term growth.

- Saleque Sufi

The interim administration, led by Dr. Muhammad Yunus and in power since August 2024, was entrusted with more than day-to-day governance. As a nonpolitical and ostensibly neutral authority, it was widely expected to address deep-rooted governance failures and initiate structural reforms in key backbone sectors of the economy. The energy and power sector, long plagued by inefficiency, corruption, and policy inconsistency, ranked high on that reform agenda.

Sixteen months on, however, a neutral assessment suggests that expectations have only been partially met. While a few corrective steps were taken, the overall approach remained largely “business as usual,” leaving Bangladesh’s energy security fragile at a time when resilience and reform were most needed.

Electricity generation costs and system losses increased, the primary fuel supply crisis deepened, and despite substantial subsidies, the financial condition of state-owned enterprises—BPDB, Petrobangla, and BPC—did not improve.

The government did make a promising start by canceling the nontransparent Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act and restoring the sole authority of the Bangladesh Energy Regulatory Commission (BERC) to determine fuel and electricity prices. However, it failed to take action against those responsible for massive irregularities and corruption. No meaningful steps were taken to exploit discovered coal resources or to expedite onshore and offshore petroleum exploration. The government hesitated in adopting a clear strategy for utilizing Bhola gas resources and failed to significantly increase the contribution of clean energy.