Power demand dips as winter approaches, unpaid bills continue to rise

If seasonal electricity consumption becomes lower as expected in the coming winter, BPDB’s revenue will fall further. It poses an increased risk of mounting arrears as capacity charges and other obligations accumulate.

As winter sets in, electricity demand across the country is steadily declining. Daytime demand has already dropped below 8,000 megawatts and is likely to fall even further as temperatures continue to drop. Meanwhile, unpaid bills for electricity purchase owed to the Bangladesh Power Development Board (BPDB) are rising sharply. Discussions with local power producers reveal that BPDB has not been making regular payments since March 2025. Their outstanding dues have now exceeded BDT 250 billion. If seasonal electricity consumption becomes lower as expected in the coming winter, BPDB’s revenue will fall further. It poses an increased risk of mounting arrears as capacity charges and other obligations accumulate, according to sector insiders.

Bangladesh currently has a total installed electricity generation capacity of 28,359 megawatts. On November 16, estimated demand during the day stood at 10,710 megawatts, rising to 11,670 megawatts at night. However, hourly supply data shows that at 5 am on that day, demand was only 7,862 megawatts. The peak demand recorded at 9 pm was 10,960 megawatts.

Earlier, the demand fell to 7,355 megawatts on the morning of November 15, climbing slightly above 10,000 megawatts during the evening peak. Even at peak hours, Bangladesh is currently using just over one-third of its installed capacity. It is estimated that the average demand could drop to around 8,500 megawatts as winter intensifies in December. With no growth in electricity consumption, BPDB’s revenues are shrinking, making it even harder to clear dues, according to energy experts.

Asked about the delay in clearing dues, a senior BPDB official who requested anonymity, told Bonik Barta, “It’s not that bills are not being paid at all. But the amount we are able to pay every month is lower than the bills being submitted. Bill payments depend entirely on fund releases from the Finance Division. We are trying to increase payments to local power plants as much as possible.”

Power producers said that although BPDB had shown some improvement in clearing arrears late 2024, the situation worsened again from March 2025. Currently, unpaid bills have crossed BDT 250 billion.

Summit Group is one of the country’s largest private suppliers of electricity. The company is owed more than $400 million, or approximately BDT 49.6 billion. Despite repeatedly writing to BPDB seeking payment, the company has not received any meaningful resolution. Of Summit’s outstanding receivables, its combined-cycle power plants alone are owed BDT 34.1 billion, while its other fuel-based plants are owed BDT 15.5 billion.

Among the private electricity suppliers, United Power Generation & Distribution Company (UPGDC) has BDT 30.78 billion pending with BPDB. Unpaid bills for its gas-based plants totaled BDT 5.9 billion from February to October in 2025, while furnace-oil plants have BDT 24.87 billion outstanding.

Commenting on the issue, Md Shamim Mia, head of regulatory affairs at UPGDC, told Bonik Barta, “United Power’s outstanding receivables from BPDB have exceeded BDT 30 billion. The payments BPDB is currently making cover only a small fraction of the dues. If this situation continues, ensuring an uninterrupted electricity supply in the greater Mymensingh region during the next summer will be a major challenge. The company is already facing difficulties in making payments for imported fuel.”

Doreen Power Generations and Systems Limited (Doreen Power) is owed BDT 13.78 billion, while Confidence Power is owed BDT 13 billion. The coal-based ultra-super-critical plant operated by SS Power Limited has outstanding bills of roughly BDT 45 billion. The company has not received regular payments since June 2025. When asked about the matter, SS Power’s Chief Financial Officer, Mohammad Ebadat Hossain Bhuiyan, told Bonik Barta, “BPDB’s unpaid bills to SS Power now stand at around BDT 45 billion. Since June, we have not been receiving regular payments. As a result, we are struggling to pay our EPC contractor, import coal, and carry out repair and maintenance work.”

Other private plants have an additional BDT 110 billion in unpaid bills. These include at least 30 companies, including BCPCL’s power plant in Patuakhali’s Payra, the Rampal power plant, Barisal Electric Power Company Limited, and Orion Power Dhaka Limited (OPDL).

Industry sources said Independent Power Producers (IPPs) collectively sell more than BDT 30 billion worth of electricity to BPDB every month. Since arrears began accumulating in March, total unpaid bills have now surpassed BDT 250 billion. Furnace-oil plants alone have BDT 60–70 billion pending, while coal-, gas-, and other fuel-based plants account for the rest.

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