Watt And Worry

Bangladesh's energy sector is in deep financial distress. Mounting debts, growing subsidies, and rising fuel import costs have left power agencies gasping.

- Mollah Amzad Hossain

The Bangladesh Power Development Board alone owes over $3 billion. Consumers are already feeling the pinch as price hikes loom, with rising fuel costs and subsidies that strain the economy. Experts stress that without urgent reforms-investing in local energy, slashing inefficiencies, and strategic planning-the crisis will only deepen. Every flick of the switch is a reminder: we're paying for years of mismanagement-and the crisis is far from over.

Against the backdrop of ongoing political debates and discussions regarding mismanagement, irregularities, and corruption in the power and energy sector, it would not be accurate to conclude that the latter is less controversial. While some other sectors may have surpassed the power and energy sector in terms of inefficiency and corruption, this remains one of the widely debated sectors. The post-COVID-19 surge in global fuel prices has significantly reshaped the energy sector landscape.

Since 2021, the widening gap between the costs of supply and prices of electricity, gas, and fuel to end-users has created a persistent deficit. The depreciation of the Bangladeshi taka against the US dollar, coupled with increasing dependence on imported fuel, has further exacerbated the crisis. Consequently, realizing the huge outstanding dues in this sector has become a significant challenge for the government. The country’s once-strong reputation for timely debt payments in the private power and energy sector is now waning. Despite sincere efforts, the current backlog still stands at around $3.5 billion.