Power distribution privatisation plan faces opposition from Basad

Bangla Press Desk:  ‎The Bangladesh Samajtantrik Dal (Basad-Marxist) has strongly protested the government's reported plan to hand over the country's electricity distribution system to the private sector, claiming that the move would lead to further hikes in electricity tariffs and place an additional burden on ordinary consumers.

‎In a statement issued on Thursday, Basad (Marxist) Central Executive Forum Coordinator Masud Rana said the government has initiated a move to place all electricity distribution companies under private management.‎

‎As part of the process, the power, energy and mineral resources minister has reportedly invited proposals from private entrepreneurs to operate the distribution companies.

‎He said the country's power sector should be freed from what he described as unplanned policies, import-dependent energy strategies and exploitative agreements benefiting domestic and foreign interests, and instead be managed under a national, people-oriented framework. 

‎According to him, the government's privatisation plan would undermine that objective.

‎The statement said the government recently raised electricity prices at both the wholesale and retail levels, citing rising import costs, a widening gap between production costs and retail prices, and increasing subsidy pressure. Shortly afterwards, it announced its plan to transfer electricity distribution to the private sector. 

While the government has argued that the move would improve efficiency, transparency and bill collection, Basad (Marxist) claimed that no responsible government authority had previously identified inefficiency or weaknesses in bill collection as reasons for the recent tariff hike.

‎The party also claimed that 93% of electricity generated in India is distributed through state-owned entities. It argued that not only India but also many developed countries refrain from placing their entire electricity distribution systems under private ownership, considering the sector a "natural monopoly." 

‎According to the party, any shortcomings in the distribution system should be addressed through reforms rather than privatisation.

‎The statement further alleged that the government is pursuing the privatisation plan to meet conditions set by the International Monetary Fund (IMF) for loan assistance, including the phased withdrawal of energy subsidies and further increases in electricity prices by 2027.

The party demanded the immediate withdrawal of what it described as an anti-public plan to privatise the country's electricity distribution system.