Economy
United Group power plants getting gas at concessional rate, but selling electricity at commercial rate to EPZs
Two private power plants have been receiving gas supply from the two subsidiaries of the state-owned Petrobangla at public power plant’s rate, but after producing electricity, selling it at commercial rate to two export processing zones (EPZs).
According to official sources, these two power plants belong to United Group and those were set up in 2008 under its commercial venture of United Power Generation and Distribution Company Ltd (UPGDL).
The 86 MW plant was set up for Dhaka EPZ and getting gas from Titas Gas Transmission and Distribution Company while 72 MW was installed to supply power to Chattagram EPZ and receiving gas from Karnaphuli Gas Distribution Co.Ltd.
Officials of the state-owned Bangladesh Power Development (BPDB) alleged that such a business by the United Group is totally unethical and also contrary to the existing law which does not allow a private firm to receive gas from Petrobangla at power plant rate, but sell the produced electricity to consumers at commercial rate.
Interestingly, the United Group sells the electricity at the weekend to the BPDB as an IPP at the power plant rate when the industries in the two EPZs remain closed.
The officials said the BPDB has been depriving a profit of Tk 800 crore annually due to this illogical business by the United Group. Instead, such profit is going to the account of the United Group.
They said the BPDB has been acting as a single buyer in the power sector which buys electricity from private and public power plants and sells those to the distribution companies and then the distribution companies sell the electricity to the retail consumers.
Beyond the BPDB, Rural Electrification Board (REB) has also been buying electricity from a few numbers of private power plants and also sells electricity to retail level consumers through its affiliated Palli Bidduyt Samities.
A top official of the BPDB informed that after raising the gas price by the government to Tk 15.75 per unit for power plants and Tk 30 for captive power plants, the United Group’s profit margin goes up.
Because, he said, as a captive power producer category, United Group is supposed to pay the gas bill at Tk 30.75 per unit. But it is now paying a gas bill at Tk 15.75 per unit.
In contrast, it is selling electricity to the Dhaka EPZ and Chattagram EPZ at a commercial rate of about Tk 10.88.
The BPDB official also mentioned that if the United Group buys gas at power plant rate, its electricity should be sold at Tk 5.5 per unit to the BPDB and then BPDB will sell to a distribution company to sell to the EPZs.
Another official said that the BPDB has been supplying electricity to the export processing zones from the very beginning.
But surprisingly, United Group came out to the market with the influence of high ups of the then government and managed the Bangladesh Export Processing Zones Authority (BEPZA) to buy electricity from the group instead of BPDB or any other state-owned distribution company.
The BPDB officials also alleged that the BEPZA, as a state-owned entity, has been purchasing electricity without any competitive bidding process which also a violation of the Public Procurement Act 2006 and Public Procurement Rule 2008.
About the allegation Hasan Mahmood Raja, originally who is owner of the United Group and now its advisor, said his group has been doing business with the two EPZs of the BEPZA fully in compliance with the existing rule.
“Nothing is in violation of the existing government’s law and BEPZA is purchasing electricity as United Group gives it a guarantee for uninterrupted power supply”, he told UNB.
He, however, admitted that the deal between the BEPZA and the United Group was done without a competitive bidding process.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
