The International Business Forum of Bangladesh (IBFB) has exhorted the interim government to conduct independent audits of all projects and contracts in the power and energy sector to address irregularities.
At a seminar styled 'Challenges in Reforms in Energy and Power Sector' hosted at IBFB headquarters in Tejgaon on Wednesday, experts hailed an initiative to reintroduce public hearings to determine electricity and energy prices.
Former BUET teacher Prof Dr M Tamim was present as a guest of honour at the event where Dr Ijaj Hossain of BUET made a keynote presentation.
IBFB president Humayun Rashid opened the seminar, saying that the IBFB has been an advocate for the interests of the local business community as an apolitical platform for over two decades.
In his speech, Dr Tamim highlighted misconceptions surrounding capacity payments, urging a thorough analysis of a Tk 1.0-trillion payment to determine its actual utilisation.
He criticised the politicisation of technical issues in the energy sector, stating: "In Bangladesh, we are driven by figure-based politics."
For example, according to Dr Tamim, the Awami League set a target for 24,000-megawatt electricity production as a political goal, while Bangladesh is only utilising 13,000 MW.
Technical matters, including energy, have been turned into political issues, leading to data manipulation across the board.
"The country's projected GDP growth target of 9 per cent for the next 20 years is unrealistic in the current context," cited the energy expert.
He also pointed out the lack of local gas exploration in the country's energy sector due to personal profit motives.
Keynoter Ijaj questioned the role of energy ministry, noting: "In developed countries like the United States, the government doesn't determine energy prices."
"Our energy ministry has become a behemoth. In the US, while there is an energy minister, independent bodies like the Bangladesh Energy Regulatory Commission are responsible for providing civil services, including energy regulation."
The crisis in industrial energy consumption has not led to increased energy use, said Dr Ijaz, adding: "Around 60 per cent of our natural gas is used for power generation, with 18 per cent going to captive power generation. Residential gas consumption accounts for 11 per cent."
"Currently, 20 out of the country's 29 gas fields are operational, and our gas production stands at 2,202 mmcfd. However, increased gas consumption in various sectors over the past five years has led to supply shortages."
Dr Ijaz also highlighted system loss in gas-transmission lines accounted for 5.0 per cent, resulting in an annual economic loss of approximately $1.0 billion.
With LNG imports at $15 per unit, the loss is expected to increase, he said, warning that the country's natural gas reserves could be depleted in nine years.
Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), criticised the ministry for becoming a hub of corruption for the past 15 years.
He cited an example of a Bangladeshi company that shifted to Singapore amid financial crisis, sending dollars abroad while the reserves were under pressure, with ordinary citizens bearing the cost.
BTMA director Razeeb Haider said industry gas prices have risen by over 200 per cent in recent years, now costing Tk 31.5 per unit.
He expressed concern about its impact on foreign contracts and overhead costs in business, given the unpredictable rise in gas prices.
Despite rural electrification, Mr Haider said, load-shedding remains a significant issue as the Rural Electrification Board has still to achieve the capacity to provide industrial-level services.
Other speakers at the event included Bangladesh Solar and Renewable Energy Association president Nurul Akhtar, IBFB founder president Mahmudul Islam Chowdhury and vice-president MS Siddiqui also spoke.
Molla Amzad, editor of Energy & Power, moderated the seminar.
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