IBFB calls for energy audit to restore good governance in energy sector

[Dhaka, 4th September’ 2024] International Business Forum of Bangladesh (IBFB) has called upon the interim government to rum independent audit to all projects and contracts in the power and energy sector for addressing irregularities.
Experts while addressing the seminar the expert speakers welcomed the attempt to re-launch the public hearing to determine the price of electricity and energy products.
BUET former Prof Tamim was guest of honour at the seminar titled ‘Challenges in Reforms in Energy and Power Sector’ at IBFB head office in capital’s Tejgaon on Wednesday. Dr Ijaj Hossain of BUET made keynote presentation while IBFB President Humayun Rashid made address of welcome.
In address of welcome, Humayun Rashid said that IBFB has been advocating for interest of local business community as an apolitical platform over last two decades.
“We are always doing advocacy for the interests of business and entrepreneurs of the country,” said Rashid. Managing director at Energypac.
Addressing the session, Prof Tamim said that there is a misconception about capacity payment, we need to find out how much of the Tk 1 trillion payment is being used.
“In Bangladesh, we are moving on figure-based politics. For example, Awami League set target of 24000-megawatt electricity production as political target. I am using 13 thousand MW. All technical issues including energy have been made political issues. There has been data terrorism in every area. Surprisingly. The country mentioned GDP target of 9 percent growth for next 20 years which is baseless in current context,” he said.
Dr Tamim further mentioned that gas was not explored locally in the development of the country’s energy sector due to personal profit.
Raising question on role of energy ministry, Dr Ijaz said the government has no role in determining energy prices in a developed world like America.
He said our energy ministry has become a monster. “In America there is a minister of energy, but there are separate bodies to provide all civil services, including energy, commissions like Bangladesh Energy Regulatory Commission (BERC).
Dr. Ijaz said that energy consumption has not increased due to the crisis of industrial entrepreneurs for energy.
“Around 60 percent of our natural gas is used in power generation, of which 18 percent goes to captive power generation. Residential gas consumption is 11 percent,” he added
There are 20 of the country’s 29 gas fields are now in operation.
Dr Ijaz said that everything in the energy sector has become import dependent. Our current gas production is 2202 mmcfd.
“In the last 5 years we have increased the consumption of equivalent gas in many areas. As a result, supply shortages have arisen,” he said
The amount of system loss (5 percent) due to faults in our country’s gas transmission lines is about $1 billion a year. The amount of economic loss will increase if the LNG being imported at the current rate of $15 goes up in the future.
Dr Ijaz pointed out that after nine years, the country’s natural gas reserves will fall to zero.
BTMA Director Razeeb Haider said that the price of gas in the industry has increased by more than two hundred percent in the last few years.
“Currently we have to buy gas at the rate of 31.5 taka. Gas prices are increasing without any notice. Foreign buyers’ contract with us for several years. Overhead costs in our business,” he said.
He said that most of the rural areas of the industrial areas of the country are under electricity.
Load shedding cannot be reduced in rural electrification. In fact, the Rural Electrification Board could not achieve the capacity to provide services on industrial lines, according to the trade body leader.
Bangladesh Textile Mills Association (BTMA) Showkat Aziz Russell said that Energy Ministry turns into a haven of corruption despite control from the head of government over last 15 years.
“A Bangladeshi company became a Singaporean company overnight, when the country’s reserves were in crisis, we sent dollars to Singapore. Common people have paid for this,” said Russell, managing director at Amber Group.
Bangladesh Solar and Renewable Energy Association (BSREA President) Nurul Akhtar, IBFB founder president Mahmudul Islam Chowdhury and vice-president M S Siddqui also spoke on the meeting moderated by Energy & Power Editor Molla Amzad.