Govt mulls measures to limit power consumption

• Govt is considering reduction of working hours and implementation of work-from-home policy to save electricity

• Bans on illumination of buildings, markets 

• Nasrul hints at fuel price hike

The government is planning to impose some fresh initiatives to save electricity consumption across the country to tackle the ongoing load shedding. As part of the initiative, the government wants to introduce shorter working hours from 9am to 3pm and implement a work from home policy in an attempt to save electricity.

The government will also ask people to end social and cultural functions like marriage ceremonies and close down marketing and shopping mall by 7pm.

The Ministry of Power and Energy will make the recommendations to the Ministry of Public Administration and other concerned ministries, Prime Minister's Energy Adviser Tawfiq-e-Elahi Chowdhury said in a press conference at the Prime Minister's Office on Thursday. 

Dr Tawfiq-e-Elahi Chowdhury said: “The recent crisis in the electricity sector is like a war situation as countries across the world is facing a similar crisis. Today we have discussed some issues. We will take action after getting approval from the prime minister.

 “Till September we have electricity demands of 14,500MW. We are trying to decrease this demand to 12,500 MW by imposing some directives to save electricity. If we can do it properly the level of daily load shedding will not cross 500MW hopefully,” said the advisor to the prime minister.

“We are not sure how long the power shortages will last but if we can survive till September then the situation will improve. So, all of us should use electricity responsibly to tackle this situation right now,” he added.

Habibur Rahman, secretary of the Power Division and other high officials of the power sector were present in the two hours long close-door meeting.

The recent shortage of power caused by a fuel crisis is behind the recent incidents of load shedding across the country. 

The recent power cut is disrupting industrial production while common people are suffering due to the hot weather.

On Tuesday, Prime Minister Sheikh Hasina gave instructions on this crisis at a program.

She mentioned that, due to the recent economic turmoil across the globe – as an impact of the coronavirus pandemic and the Russia-Ukraine war, the prices of fuel oil and LNG have soared. 

"As a result, many countries around the world are experiencing power cuts," she said. 

"Besides, transportation has been hampered due to the Russia-Ukraine war compounding the crisis," the premier said, adding that even coal is not available.

The premier instructed officials concerned to make an area-based power supply time to ensure the best use of electricity during the time of power shortage.

According to the BPDB, the demand for electricity at this time of the year stands at 14,000MW.

On Tuesday, a maximum of 13,228MW of electricity was distributed at the substation level.

Bans on illumination of buildings, markets to save electricity 

The government has banned illuminating social events, community centres, shopping malls, shops, offices, courts and homes for decorative purposes in a bid to save energy.

The Cabinet Division has issued a notification in this regard on Thursday (7 July). 

The restrictions imposed, in the backdrop of spiraling fuel prices in the global market, will remain in force until further notice.

The decision came in the wake of the power disruptions across country following global energy crisis due to Russia-Ukraine war.

Nasrul hints at fuel price hike

State Minister for Power, Energy and Mineral Resources Nasrul Hamid says Bangladesh may have to 'adjust' fuel prices to better reflect the turmoil in the international market as the Ukraine war continues to drive up costs. 

"The price of fuel in the global market has been climbing for the last six or seven months. The oil we used to buy for around $70-71 a barrel now costs $171 and it's only rising," he said in an audio message to the media on Thursday.

While the government has been subsidising fuel imports amid the crisis, it must consider adjusting prices at some point, according to Hamid. 

"Countries around the world have taken various measures to address the rise in fuel prices. Take neighbouring India, for example, where there is a difference of around Tk 35 to Tk 50 per litre for different types of fuel."

Hamid also touched on the dwindling natural gas supply that forced the government to scale down electricity generation. Around 64 per cent of power plants in Bangladesh run on natural gas, but the reserves will eventually dry up, he warned.

"I've been saying for the last 10 years that our gas supply is declining. But we made adjustments to address any shortages by importing gas from abroad."

Fuel is imported in two ways: one is through long-term contracts and the other is to buy from the spot market, according to Hamid. However, the spot market is now under intense pressure as prices are soaring due to the conflict in Ukraine, particularly as most of Europe's gas supply comes from Russia.

"Almost all European countries are dependent on this gas and as a result, the price of gas has gone up from $4.0 to almost $30 in the spot market."

Even with government subsidies, it may not be possible to meet the spiralling costs while, on the other hand, ordinary people will have to bear a massive burden if the authorities keep raising prices, according to Hamid.

Hamid stressed the need to be frugal in terms of energy consumption under the circumstances and urged the public to be patient.

"This is a temporary situation. We have many power plants. But we had to reduce their output due to the gas shortage. We have prioritised our gas supply for fertiliser plants and other industries. And if everyone is a bit economical with their use of gas, then we can definitely come out of this cycle."