All the diesel-fired power plants in Bangladesh will remain shut from today under a new austerity measure to reduce diesel import and save foreign exchange.
An area-based power outage will also be executed for a week initially, the government announced Monday as part of a crisis-management action.
Incidentally, the belt-tightening measure in power sector, having cascading impact on life and economy, comes at a time when the country bakes amid searing heat despite this being rainy season and Europe burns in wildfires ignited by global warming.
State Minister for Power, Energy and Mineral Resources (MPEMR) Nasrul Hamid rolled out the fresh austerity plan at a press briefing in the afternoon at the secretariat.
Economists fear industrial output will dip and cost of production in factories redouble with implementation of the power-cut plan.
Diesel consumption will not be reduced as people will ''resort to use of generators run with the inefficient diesel to cover load-shedding'', they say.
Power-plant owners welcomed the government move and hoped that it would be a temporary solution to the present crisis.
"Primarily, we will conduct daily area-wise one-hour load-shedding on an experimental basis. If needed, after one week we will recast the decision," he said.
Industrial areas and the areas having commercial significance might be outside the purview as the government intends to provide uninterrupted electricity supply there to ensure smooth industrial output, said Mr Hamid.
The government expects to cut diesel import by 10 per cent with the shutting of the diesel-fired power plants having the total generation capacity of around 1,300 megawatts (MW).
Mr Hamid expects that another 10- percent diesel import could be cut if the transport owners become cautious with austerity.
Bangladesh imports around 50 million tonnes of diesel annually, and daily consumption is around 15,000 tonnes.
The government has not yet decided on shutting petrol pumps for one day a week, he said, adding that discussion with petrol-pump owners will be required prior to taking any such decision.
He also urged all to limit the use of high energy-consuming air- conditioners (ACs) in mosques, temples and other religious centres like those in offices and other establishments under the national austerity measure.
The religious centres should operate ACs just during payer time, he stressed.
He said in no way markets and shopping malls will be allowed to keep open after 8 pm.
''Electricity connections to shops and shopping malls will be snapped if found open after 8 pm,'' Mr Hamid says, on a note of forewarning.
''The austerity measures are temporary, not for a long term, and will be implemented to cope with the high energy prices globally,'' said Mr Hamid.
Many countries in Europe and Asia also executed austerity measures to cope with the changing global scenario, he said in support of the government step.
Power-distribution entities will conduct the load-shedding under a schedule so that people get time to take preparation for it and do not feel any disturbance.
Government office hours may be rescheduled while virtual meetings might be held instead of those with physical presence, he said.
Economists take efficacy of the frugality measure with a grain of salt. "This is a faulty measure as it will not ensure reduction in diesel consumption," says executive director of Policy Research Institute (PRI) Dr Ahsan H Mansur.
Industries will be worst affected due to the 'austerity' measure as these manufacturing units will also have to come under load-shedding due to absence of any uninterrupted electricity-supply lines for industries, he notes.
Manufacturing costs will soar as the business entrepreneurs will have to run factories with less-efficient generators, said the PRI top brass.
Diesel consumption will not be reduced rather may increase as factories, offices, and even the households, will rely on generators to ensure supply of electricity during load-shedding hours, he said.
Mr Mansur thinks austerity might be effective only in rural and remote areas, where diesel consumption is usually low and there is no mechanism to run diesel-fired generators
Cost for commoners will go up as a consequence, he said.
Mr Mansur was also critical over the government move to shut petrol pumps for one day in a week, saying it will raise consumers' sufferings instead of reducing diesel consumption.
"Not a single gallon of diesel consumption will be cut as a consequence," he said categorically as the consumers will not cut consumption with the government move.
Transport owners will have to stand in a long queue to collect diesel and may go for stocking of the fuel if the pumps are shut, he forecsts.
The economist suggests following market-based economy and raising the prices of diesel and tariffs of electricity to a tolerable and minimum level to come out of the crisis.
''Only hike in tariff can reduce consumption,'' says Dr Mansur, who had once served the IMF.
"We are shocked with the announcement of the austerity measure," said energy adviser of the Consumers Association of Bangladesh (CAB) Dr Shamsul Alam.
Austerity cannot be ensured depriving consumers, he added in an an immediate reaction.
The CAB leader demands cut in ''unnecessary cost in power and energy sectors'' to ensure austerity.
It is a timebound decision from the government to reduce consumption of expensive diesel, said president of Bangladesh Independent Power Producers Association (BIPPA) Imran Karim.
"We welcome the decision for the sake of the country.''
Mr Karim hoped that this interim solution would not last long with the changing global scenario.
Sources said a previous announcement was made by Prime Minister's energy adviser Dr Tawfiq-e-Elahi Chowdhury to enforce a two- hour area-based load-shedding daily across the country from Tuesday in a bid to tackle the ongoing power crisis.
The energy advisor announced the decision after a high- level meeting at the Prime Minister's Office in the morning Monday.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Principal Secretary to the Prime Minister Dr Ahmad Kaikaus also were present at the meeting.
The government on June 20 implemented austerity measure shutting all shops and shopping malls after 8 pm every day.
The government also prohibited illumination in different social gatherings in community centers, shopping malls, shops, offices and houses on July 7.
Meanwhile, the government will soon take a decision on office timing, aiming to save power, said State Minister for Public Administration Farhad Hossain on Monday.
Recurrence of load shedding in recent days has forced the government to consider rescheduling the office time.
"Office hours may be reduced or work from home might be introduced to save power. We are also seriously considering using the least amount of power at offices. We will take the decision within the next one week," he told the media at his Secretariat office.
He, however, said that the government would take the decision in such a way so that people do not suffer.
"The issue is still at the discussion level. We are getting suggestions on office timing from 9:00am to 3/4:00pm," he said.
"The discussion on the issue is going on with the Prime Minister Sheikh Hasina," said Mr Hossain, adding that they would take the final decision as per the premier's suggestion.
Azizjst@yahoo.com
talhabinhabib@yahoo.com