Power sector’s indemnity act suspended

All the activities under the much-criticised Quick Enhancement of Electricity and Energy Supply Act 2010, commonly known as the Indemnity Act, in the power and energy sector will remain suspended, said the newly-appointed energy adviser to the interim government.
Initiated in 2010 when the power sector was struggling to meet the country’s demand, the act stipulates there is no need to float any tender to award any power plant construction activities.
Procurement under this act does not need to go through the standard Public Procurement Rules that are followed by other ministries.
Though the process was meant to be for a short time, the Awami League government never abolished it. In 2021, it was extended for another five years.
Thanks to this act, hefty amounts were paid as capacity charges to the power plants.
All previous activities under this act will be reviewed by the interim government, said M Fouzul Kabir Khan, the adviser to the ministry of power, energy and mineral resources, at a media briefing in the secretariat yesterday.
“It will be decided by the advisory council whether the act will be abolished or not. But from now on, the pending works under this act will remain suspended,” Khan added.
Different media outlets published articles about the anomalies of the sector, especially under this act, which may raise questions among people, said a press release from the ministry.
Under this circumstance, all the negotiations, projects and purchase activities will remain temporarily closed.
However, the contracts that were done under this act will continue.
The interim government will not take any decision regarding hiking the power or energy tariffs by bypassing the Bangladesh Energy Regulatory Commission (BERC).
Last year, the Awami League government amended the BERC Act and incorporated a clause to set the energy prices by themselves without any public hearing.
They have increased the power price several times since this clause was rolled out.