Published: 10:00 AM, 13 August 2026
Keep 132kV, 230kV power customers under BPDB: Engineers
The Bangladesh Power Development Board (BPDB) Engineers Association has urged the government to keep all bulk electricity consumers connected at the 132kV and 230kV levels under BPDB as the country’s sole electricity buyer and supplier, arguing that the move could significantly reduce government subsidies and improve the reliability of power supplies to large industries. In a letter dated August 10 addressed to Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud and State Minister Anindya Islam Amit, the association said allowing BPDB to directly supply high-voltage bulk consumers would be the most economically viable and policy-consistent arrangement. The association argued that BPDB, as the government-designated “Single Buyer”, already bears responsibility for purchasing electricity from public and private generation companies, managing power purchase agreements, coordinating fuel supplies, maintaining grid stability and ensuring reserve capacity. According to the association, transferring 132kV and 230kV bulk consumers to other distribution entities could increase the subsidy burden because those entities do not bear the same generation, capacity planning, reserve-margin or grid-management costs.
The engineers cited a hypothetical 220MW bulk consumer to illustrate the financial implications. They estimated that if BPDB does not sell electricity directly to such customers, the government could face around Tk 405 crore in additional subsidy requirements in the example presented in the letter.
The association also warned that the financial burden could become considerably larger as new industrial connections come online. It said around 19 connections involving nearly 2,000MW across five entities were reportedly awaiting approval. If these connections become operational under the existing arrangement, BPDB could require an additional Tk 4,400 crore in subsidies, according to the association. ‘BPDB can save around Tk 0.50 per unit’
The association further argued that BPDB’s distribution cost is lower than that of several other distribution utilities.
It cited distribution costs of around Tk 0.75 per unit for BPDB, compared with Tk 1.39 for Bangladesh Rural Electrification Board (BREB), Tk 1.18 for Dhaka Power Distribution Company (DPDC), Tk 1.16 for Dhaka Electric Supply Company (DESCO), Tk 1.33 for West Zone Power Distribution Company (WZPDCL) and Tk 1.43 for Northern Electricity Supply Company (NESCO).
On this basis, the association estimated that supplying power to the bulk consumers through BPDB could save the government roughly Tk 0.50 per unit, helping reduce the subsidy burden.
The engineers also raised concerns over the allocation of demand charges and other revenues. They said BPDB is responsible for ensuring generation capacity, reserve margins, load forecasting and system stability, while some distribution entities collect demand charges and security deposits from bulk consumers despite not bearing the corresponding generation and system-management costs.
The association said directing such revenues to BPDB could further ease pressure on government subsidies. The letter also linked the proposal to Bangladesh’s efforts to attract domestic and foreign investment in economic zones and high-value industries.
The association said future investments in sectors such as semiconductors, steel, refineries and electronics manufacturing would require reliable, high-quality electricity. Any fragmentation in responsibility for supplying power at the 132kV and 230kV levels, it warned, could create coordination problems and affect the quality and reliability of supply.
It argued that BPDB, together with its transmission subsidiary Power Grid Bangladesh PLC, already possesses the generation planning, transmission infrastructure and technical capacity required to serve such high-voltage industrial customers.
The association also questioned the involvement of distribution entities whose statutory mandates and infrastructure, it said, are primarily focused on lower-voltage distribution and geographically defined service areas.
The engineers cited the Rural Electrification Board Act, 2013, arguing that BREB’s principal mandate is rural electrification and the development of agriculture, cottage and small industries in rural areas rather than supplying large industrial consumers at 132kV and 230kV.
They also referred to existing Bangladesh Energy Regulatory Commission (BERC) tariff provisions and the current institutional division of responsibilities within the power sector.
According to the association, involving additional agencies in the supply of high-voltage bulk electricity could lead to overlapping responsibilities, administrative inefficiencies, revenue-sharing complications and higher government subsidies.
The engineers ultimately urged the government to ensure that all 132kV and 230kV bulk electricity consumers remain under BPDB’s Single Buyer framework, describing the arrangement as essential for saving public funds, reducing subsidies and ensuring the long-term financial sustainability of the power sector.
The letter was signed by A.K.M. Mohiuddin Azmi, member secretary and Md Aslam Uddin, convener of the BPDB Engineers Association.
