DHAKA, March 13, 2024 (BSS) - The Center for Policy Dialogue (CPD) has laid emphasis on phasing out fossil fuel-based power plants on time and implementing a "no electricity, no payment" policy for mitigating the soaring power costs.
 
The non-governmental research organisation has also chalked out some other strategies with special emphasis on transparent pricing policies.
 
The strategies include ensuring the phased shutdown of power plants targeted by the government, avoiding any new capacity charges, and competitive initiatives to procure electricity through open tenders.
 
CPD also made a call to boost the use of renewable energy sources while charging consumers a minimal fraction to counter price inflation, during a media briefing titled "Recent Electricity Price Increase: Are There Alternative Options for Affordability?" held at the CPD office here today.
 
Speaking at the briefing, CPD Research Director Dr Khondaker Golam Moazzem said it is important to initiate competitive bidding process in PPA for which abolishment of ‘emergency power and energy supply act’ is required.
 
 This will significantly reduce the purchase price of electricity, he added.
 
 
He mentioned that the increase in capacity has outpaced the growth in electricity consumption significantly.
 
“While capacity has surged by double digits, consumption has only seen single-digit growth. This disparity has been widening since 2018, posing a significant challenge with capacity payments becoming a major concern for the government," he added.
 
Dr Moazzem stated that in the 2022-23 fiscal year, the government provided Tk 39,500 crore in subsidies for electricity. During this time, capacity payments were nearly equal, he added.
 
He urged the government to unveil its subsidy coordination plan and refrain from imposing additional burdens on consumers.