# Power Minister: Previous Government's Capacity Charges Created Major Financial Burden

*Power Minister Iqbal Hasan Mahmud discusses the financial burden imposed by past capacity charge agreements.*

June 13, 2026 · Economy

## At a glance

- Current government faces significant financial burden due to past capacity charge agreements.
- Legal and contractual sensitivity of the issue prompts government review and necessary measures.
- New 'Protection and Automation Lab' inaugurated to enhance national grid security.

Power, Energy, and Mineral Resources Minister Iqbal Hasan Mahmud stated that the current government faces a significant financial burden due to capacity charge agreements made by the previous government. The minister emphasized that the issue is legally and contractually sensitive, prompting the government to review and take necessary measures. He made these remarks during a meeting with officials of Power Grid Company of Bangladesh PLC (PGCB) and National Load Dispatch Center (NLDC) in Dhaka on Friday.

Mahmud noted that while production and transmission capabilities in the power sector have increased, the distribution system has not kept pace. This has led to limitations in the supply system despite operational production and transmission infrastructure. He also mentioned that unplanned expansion of distribution lines in the past has caused disruptions in power supply in many areas, leading to prolonged power outages. Discussions with PGCB have been held to identify these issues and recommend quick solutions.

During the visit, the minister inaugurated a new 'Protection and Automation Lab' under the national grid's system protection and metering circle. He highlighted the lab's role in analyzing faults and disturbances in the national grid and implementing modern grid security measures. The minister also mentioned that preparations are underway for the launch of the first unit of the Rooppur Nuclear Power Plant in November.

PGCB officials informed that efficient and cost-effective operation of the national grid is possible if gas-based power plants in Dhaka and surrounding areas, as well as the Barapukuria coal-based power plant, are operated at full capacity. They also noted that infrastructure development and capacity enhancement for the safe and uninterrupted transmission of electricity from the Rooppur Nuclear Power Plant to the national grid are progressing successfully.

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Source: https://pulsetoday.com.bd/en/economy/capacity-charge-financial-burden-previous-government-power-minister