TDS Desk:

As the 13th national parliamentary election approaches, political parties are making a range of promises to people. Major parties such as the BNP, Bangladesh Jamaat-e-Islami, and the National Citizen Party (NCP) have also put forward commitments related to the power and energy sector. However, there is no clear roadmap on how to reduce the financial pressure of developing this vital sector, lower gas and electricity prices to ease public hardship, or cut import dependence to build self-reliance.

Because electricity is sold at prices lower than production costs, the financial deficit of the Bangladesh Power Development Board (BPDB) is now higher than at any time in the past. To narrow this gap, BPDB sees no alternative but to raise electricity prices. The utility has indicated that, after the election, it will submit a proposal to the Bangladesh Energy Regulatory Commission (BERC) seeking a price hike. Power division officials made the remarks at a public hearing on January 29 on the re-fixing of furnace oil prices. However, they did not specify whether the proposed increase would be at the wholesale or retail level. The deepening crisis in the financially struggling power sector is largely driven by electricity generation based on imported high-priced gas and fuel oil. This import dependence has pushed the power and energy sector into financial distress, placing sustained pressure on the broader economy. Although gas and electricity prices have been raised repeatedly over the past decade and a half, the sector has failed to regain financial stability. Instead, volatility in international markets has had a significant impact on the energy sector. Shortages of funds for LNG imports, reduced supplies of liquefied petroleum gas (LPG), and consumers’ inability to purchase energy at affordable prices have compounded the problem. Economists and energy experts warn that the sector could become even more unstable if geopolitical tensions escalate into conflict in regions such as the Middle East, potentially disrupting global energy supplies.

Against this backdrop, stakeholders say public expectations from political parties’ energy sector plans are high ahead of the election. In particular, people are seeking uninterrupted gas supply, affordable gas and electricity, and proper investigations into the financial irregularities and corruption that have plagued the sector in recent years. While major parties are giving prominence to the energy sector in their election pledges and outlining how to reorganise it.

The BNP, one of the country’s largest political parties, has not yet announced its election manifesto. Party policymakers, however, have said that the BNP’s declared “31-point outline for repairing the state structure” will form the core of its manifesto. Point 18 of the document addresses the modernisation and establishment of good governance in the power, energy, and mineral resources sectors. It states that all “black laws,” including indemnity provisions in the power, energy, and mineral sectors, will be repealed. It also pledges to stop ongoing large-scale corruption in purchasing electricity from public-interest-opposing quick rental power plants, which has led to a severe curse on state finances. The BNP further promises to move away from import dependence by expanding renewable and mixed-energy-based power generation, and to take appropriate measures to explore and extract neglected gas and mineral resources.

BNP Standing Committee member and former state minister for power Iqbal Hasan Mahmood Tuku told journalists, “The party’s election manifesto would outline plans for the power and energy sector in line with its 31-point agenda. If voted to power, the BNP will prioritise local gas exploration from the outset. If it achieves positive results, import dependence will be reduced gradually. The state guarantees given in the power and energy sector in recent years will be discussed. Steps will be taken regarding contracts that the public has a right to know about and which are causing severe bleeding in the power sector and the national economy,” he said.

Stakeholders say many of the country’s large gas-based power plants cannot be operated due to gas shortages. They stress the need for clear solutions on how these plants will be brought back into operation, where the gas supply will come from, and how legal issues related to costly power plants will be resolved.

At present, Bangladesh imports oil, gas, and coal worth around BDT 1.50 trillion annually. This massive import bill is draining the economy. However, the BNP’s election campaign has yet to clearly spell out how import dependence will be reduced or how domestic gas production will be increased.

The BNP has been holding election rallies across the country, including in the capital. In the campaign speeches of party chairman Tarique Rahman, various local problems are being highlighted. Energy experts, however, say there is still a lack of clarity on how the party plans to address fundamental national issues, such as the power and energy crisis, in a comprehensive manner.

At an election rally held at the Azampur Eidgah ground in Uttara on the night of January 28, Tarique Rahman assured residents that water and gas problems in the area would be resolved. “People in Uttara pay their bills every month, but they don’t receive water and gas supply properly. If the sheaf of paddy wins in the 13th parliamentary election, these two problems will be addressed first,” he said.

On gas exploration, Tarique Rahman added that efforts to explore new gas fields had been obstructed in the past and that these obstacles must be removed. “New industries must be established to create jobs,” he said.

According to sector insiders, the biggest challenge in the gas sector is declining domestic production against rising imports. They note that the Awami League government’s past approach of meeting demand through imports has severely worsened the country’s financial situation. To break out of this crisis, they argue, there should have been a concrete plan to significantly boost domestic and foreign investment in the energy sector, drawing on past experience. However, no such clear roadmap has yet emerged.

Bangladesh Jamaat-e-Islami has not yet released its election manifesto either. The party, however, held a policy summit in the capital on January 20. At the event, Jamaat-e-Islami pledged that if it comes to power, prices of gas, electricity, and water for all industries would not be increased over the next three years. No clear explanation was provided on how price stability would be ensured, nor were there concrete commitments on reducing import dependence or addressing the core structural problems in the power and energy sector.

Bangladesh’s power sector is facing its worst financial distress in history, with the Bangladesh Power Development Board (BPDB) on the brink of insolvency. In the last fiscal year alone, government subsidies to the power sector amounted to nearly BDT 385 billion. Despite this massive support, BPDB still recorded a net loss of BDT 170 billion. In a bid to reduce losses, the utility has already indicated that it will propose an increase in electricity price to the Bangladesh Energy Regulatory Commission (BERC) immediately after the election. Against this backdrop, questions have arisen over how Jamaat-e-Islami plans to tackle the crisis while pledging not to raise energy prices over the next three years. Responding to this, the party’s nayeb-e-ameer, Syed Abdullah Muhammad Taher, told journalists: “I’m not a technical person on this issue. We have a technical committee that is working on it. However, we believe that the core problem in this sector is corruption. If corruption can be stopped, prices will naturally come down.”

In August last year, the National Citizen Party (NCP) announced a 24-point manifesto aimed at establishing a “Second Republic.” The 19th point focuses on national resource management, where the party pledged to establish the people’s sovereign ownership over natural resources and committed to strengthening domestic capacity for exploration and extraction.

Last Thursday, the NCP unveiled its election manifesto titled Manifesto of Youth and Dignity. The document highlights a diversified energy mix, stating that energy security is one of the strategic priorities for a developing economy. The party has pledged to generate 20 percent of the country’s total electricity from renewable sources within five years. It also outlined plans for improved load forecasting, grid upgrades, storage technologies, addressing overcapacity, and reducing system losses. Under the manifesto, system losses are to be brought down from 10–12 percent to 5–6 percent within five years. In the industrial sector, the NCP aims to reduce peak electricity tariffs from BDT 15 to BDT 13 per unit and off-peak tariffs from BDT 11 to BDT 9. Other proposed measures include making rooftop solar installations mandatory in government buildings, setting up riverbank-based solar projects, and implementing an Energy Efficiency Master Plan by recognising energy efficiency as the “fourth fuel.”

Despite these various promises for developing the energy sector, experts note a lack of clarity on how and through what mechanisms such plans would be implemented. They also question how feasible these commitments are in light of existing realities in the energy sector. According to them, the interim government had undertaken several initiatives to curb losses and reform the energy sector, but these efforts failed to put the power sector on a sustainable footing.

Commenting on the issue, NCP Policy and Research Wing member Alauddin Mohammad told journalists, “Diversification is being given the highest priority in our energy policy. This will help us move beyond conventional thinking on energy. From architectural design to building a cost-effective and sustainable urbanisation network, we’ve plans that will ensure energy use grows in proportion to GDP and overall economic growth.”

He added that reliance on quick rental power plants had pushed the power sector towards private-sector dependence, significantly weakening the government’s public-sector financial capacity. “Within five years, 40 percent of vehicles will be converted to electric vehicles (EVs), alongside a phased transition of private vehicles to EVs. The use of renewable energy will also be prioritised,” he said.