Bangladesh will soon withdraw additional electricity charges imposed during the Sheikh Hasina administration, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said on Friday, adding that a government committee has been formed to review the mechanism and execute the withdrawal as part of wider power sector reforms.
Speaking at Sirajganj Central Jame Mosque on 20 February 2026, Iqbal Hasan Mahmud said what he described as irregularities and large-scale financial mismanagement over the past 17 years weakened the electricity sector, with capacity charge payments playing a central role. He said the current administration is working to stabilise the sector because electricity supply and pricing are directly linked to national development, industrial output and investment confidence.
Capacity charges are fixed payments made to power producers under power purchase agreements, often paid regardless of how much electricity a plant actually generates, and have been criticised by economists and oversight bodies for creating a large, recurring fiscal burden. Commentary and reporting in Bangladesh have described the model as a key driver of rising subsidies and mounting liabilities for the Bangladesh Power Development Board and the state.
Official disclosures in parliament in 2023 put the cumulative capacity charge and rental payment bill at about Tk 1.04 lakh crore paid to 82 independent power producers and 32 rental plants over roughly 14 years, underscoring how the cost has expanded as contracted generation capacity outpaced demand growth. Separately, The Financial Express reported that capacity charge arrears have ballooned, while other reporting has described the annualised impact as significant for public finances and tariff pressure.
Against that backdrop, the minister’s statement signals an effort to reduce what the government considers avoidable add-ons in electricity billing, while also addressing contract and payment structures that have increased fixed costs. Iqbal Hasan Mahmud did not publicly detail the committee’s timeline at the event, but his ministry’s position points to a near-term policy decision that could affect tariff components tied to capacity payments and related surcharges.
Alongside the energy policy remarks, the minister issued administrative directives in Sirajganj, instructing authorities to remove illegal footpath occupiers on SS Road to curb extortion and restore orderly business arrangements by relocating vendors to designated areas. He also directed local officials to take steps to reduce traffic congestion in Sirajganj town within seven days and to adopt strict measures to prevent local clashes and criminal activities, saying law enforcement will act against extortion and crime regardless of political affiliation.
Sirajganj Deputy Commissioner Aminul Islam and district BNP general secretary Saidur Rahman Bacchu were present during the programme, according to the event organisers.
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