Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood announced that the government intends to privatize electricity distribution at the consumer level to improve accountability, service quality, and bill collection. The minister emphasized that while the government will retain control over power generation and wholesale, privatizing the distribution system would enhance accountability, bill collection, and service quality.
Minister's Remarks at Energy Conclave
Mahmood made these remarks at the 'Energy Security and Transformation of Bangladesh' conclave organized by Bangla Daily Banik Barta at the Pan Pacific Sonargaon in Dhaka. He said the government had invited proposals from the private sector to take over electricity distribution companies.
Benefits of Privatization
The minister highlighted that private participation would bring greater transparency, improve service quality, and reduce the state's financial burden. He also mentioned that the government aims to implement solar power projects on a cluster basis to reduce pressure on the national distribution system, with tenders expected to be floated by September.
Energy Security Challenges
Mahmood pointed out that long-term energy security could only be achieved through increased domestic gas exploration and production alongside strengthening LNG import infrastructure. He criticized the previous government for failing to undertake effective gas exploration despite expanding electricity generation capacity.
Global Energy Security Concerns
The minister described global energy security as increasingly complex, noting that geopolitical tensions, including the Iran-US-Israeli conflict, had driven up LNG prices, forcing Bangladesh to purchase gas at higher costs from the spot market.
