Hasina in parliament defends power plant capacity charge

She asks if there is any country that does not pay capacity charge to power stations

Prime Minister Sheikh Hasina has challenged the criticism of capacity charges in the power sector by asking if any country does not pay the charge to electricity producers.

A capacity charge is a fee paid to ensure that the electricity is available when needed, such as during peak periods. It means the power stations get paid even when they are not producing electricity.

The Leader of the Opposition in Parliament GM Quader questioned the system on Thursday. He said the capacity charges are forcing the government to subsidise the power sector and to cut the subsidies, it is raising electricity prices frequently.

In her closing remarks in the current parliament’s second session, Hasina said: “Is there any country that signed a power plant construction agreement without a capacity charge? Please show me.”

She said the Special Provision Act for the power stations was passed to give free reins to the private sector.

The prime minister emphasised the essential role of the private sector in accelerating power production in Bangladesh. “Speedy power production cannot be possible only by the government. The private sector is needed here. If the private sector is not involved, employment won’t increase,” she said.

She also said the special provision act does not indemnify anyone’s actions.

“Summit built the first private power plant of the country in Khulna, but they delayed the construction and had to pay $10,000 per day for the delay. I made them pay. You must keep in mind that I don’t give someone any exemption,” Hasina said.

The government started solar and wind power generation besides electricity plants run by oil, gas and coal, according to her.

“We want to give people electricity. Still, we admit there were power cuts in hot summer weather. But we ensured that the farmers can use irrigation and get subsidies.”

She said she had ordered State Minister for Power, Energy and Mineral Resources Zunaid Ahmed Palak to stop supplying power even in the posh areas to shed the load when demand increased.

Hasina reminded Quader that Bangladesh’s power production capacity was only 1,600 MW during the BNP government in 1991 after the ouster of the Jatiya Party.

The premier also responded to criticisms over the high cost of road construction, saying that the soft soil of riverine delta is the reason behind the expensive infrastructure projects.

She said some people questioned the reasonability of the Dhaka Metro Rail and Padma Bridge Rail Link.

“Today, 60,000 people can travel by metro rail every hour. Those who are using it are getting its benefits. I don’t know if the people who questioned the project feel ashamed now,” she said.