The Power Division has requested a subsidy of over Tk 23.19 billion from the government to cover the Bangladesh Power Development Board’s (BPDB) tariff deficit, aiming to ensure uninterrupted power supply across the country, according to official sources. The BPDB has been incurring losses by selling electricity to bulk consumers at prices lower than its production or procurement costs. In a recent letter to the Finance Division, the Power Division, under the Ministry of Power, Energy and Mineral Resources, urged the allocation of the necessary funds on an urgent basis to support BPDB’s financial obligations.

The BPDB typically purchases electricity from independent power producers (IPPs) and rental power plants and also imports power from India, all at relatively high prices. As of August, the government owes BPDB Tk 33.43 billion in subsidies to cover the gap between the procurement costs and the selling price of electricity. Of this amount, a proposal to allocate Tk 10.25 billion in outstanding subsidies for eight power plants is currently under review by the Cabinet Committee on Government Purchase (CCGP).

For the 2025–26 fiscal year, the government has set a total power subsidy allocation target of Tk 350 billion. Officials noted that timely financial support from the government is crucial for enabling BPDB to make regular payments to IPPs and rental power companies, thereby maintaining a stable electricity supply. Additionally, advance payments must be made to the Bangladesh Petroleum Corporation (BPC) to ensure an uninterrupted supply of fuel oil to power plants. The Power Division emphasized in its letter that securing the necessary volumes of fuel oil and coal is critical for avoiding power disruptions, especially during the ongoing summer. Power producers have already appealed to BPDB multiple times for timely settlement of outstanding bills to sustain operations.