POWER SECTOR REFORM -BANGLADESH

PRESENTED BY:

A.S.M. HAFIZUL HOSSAIN

WORKING PRESIDENT CEC, PGCBSKU, BNANGLADESH. asmhafiz@gmail.com

BANGLADESH General information

Population 146.7 million

Area

147570 Sq. Km.

Density of Population Active lobour force Un employment rate Per capita GDP Literacy Rate Agriculture workers Idustrial Workers

904/ sq. km. 53.3% with 38% women 3.3% US $ 388 56% 62.3% 7.6%

Formation of East Pakistan Water & Power Development Authority- EPWAPDA in 1959
WATER WING River Controll Water management

SERVICE WING Dredging & Mechanical Equipment

POWER WING Power -Generation -Transmission -Distribution Gen. Capacity -88 MW

1971 Liberation of BANGLADESH

1972 Bifurcation of EP WAPDA Creation of Bangladesh Power Dev. Board BPDB a statutory body under Ministry. Integrated policy to develop electricity sector to provide electricity to all citizen as it is the Constitutional provision. Electricity declared as reserved Public Sector.

Reform Process Started

1978 Creation of Bangladesh Rural Electrification Board REB. -with a view to provide electricity to the rural population.

1985 Liberalization in Govt. policy - Electricity excluded from Reserved sector - Creation scope for private participation

1991 Distribution system of Dhaka Metropolitan City & surrounding urban areas were separated from BPDB & a new Public Sector Utility Dhaka Electric Supply Authority-DESA was created.
Later gradually the surrounding areas were handed over to REB.

IMPACT:
Increase of Over Head Expenditure Non Coordination among the entities Corruption Increased Increase tendency of violation of rules Financial indiscipline. Ultimately handicapped organization. Dismantled in 2008 Taking the privilege of Emergency

1995 Private Participation Legalized under a new ENERGY POLICY

* Vertical separation of existing utility in functional line i.e. Generation, Transmission & Distribution. * Private participation introduced * Commercialization

1996 Creation of Power Grid Company

of Bangladesh Ltd.PGCB Ltd.
A separate Electricity Transmission Utility (HT Lines) under Public Sector. Unbundling from BPDB & Registered in Stock market. So far 20% share off loaded

IMPACT
Top Heavy Style of Management Highly Increase in Over Head Expenditure. Job is not secured Irrational Salary structure among the workers & Executives. Number of Worker / Staff is less than executives. Existing workers right & facilities (as per labor law) denied.

Continuation

Initially Management had no intention to allow TU Workers managed to organize TU Provision for Engaging New workers on Daily payment basis as part of policy. (Of course union became successful to change the attitude of the management to some extent). Future service benefit like pension closed.

2001 Corporatization of BPDB owned Ashuganj Power Station as a public limited Company- APSCL.

2003 Corporatization of Distribution system of 19 administrative District of Western area named " West Zone Power Distribution Company Ltd..

NEW EXPERIEMENT
2008 Dhaka Electric Supply Authority-DESA Converted into new Company Dhaka Power Distribution Company DPDC Ltd resulting job loss of about 700 workers.

PDB
.

DESA

DPDC

WHAT NEXT ??

BANGLADESH POWER DEV. BOARD -BPDB

RURAL ELECTRIFICA TION BOARD REB 1978

DHAKA ELEC. SUPPLUY AUTHORITY DESA 1991

PRIVATE PARTICIPATIN IPP 1995

POWER GRID CO. OF BANGLADESH LTD PGCB 1996

ASHUGANJ POWER STN CO. LTD -APSCL 2001

RPCL

? ?
PBS

DHAKA ELEC, SUPPLY CODESCO

DHAKA POWER DIST CO. LTD --DPDC 2008

WEST ZONE POWER DIST CO. -WZPDPCO 2003

ELECTRICITY GENERATING CO. LTD -EGCB

NORTH WEST POWER GEN. CO

NORTH ZONE POWER DIST. CO

SOUTH ZONE POWER DIST CO

??

FUNCTIONING UNDER PROCESS

MPEMR (Ministry)
IPP TENDERS POLICY

GENERATION
ISSU LICENCEES

RPCL BPDB IPPs

APSCL

REGULETARY COMMISSION REGULETARY COMMISSION

EGCB

GENERATION TRANSMISSION DISTRIBUTION STATU ATHO. POWER FLOW INCOME FLOW

TRANSMISSION PGCB

SINGLE BYER
BPDB

DESCO DESA

BPDB
PBs
WZPDCo CONSUMERS

SET TARRIFS & CODES

DPDC

REB

DISTRIBUTION

LET US TAKE THE CASE OF PGCB FOR STUDY.

BPDB
One CE managed total Transmission System. Pyramid style Management. Staff Officer ratio was +7;1 Job was secured.

PGCB
7 GM managing the system some more posts are going to be created. Top Heavy Management. 863 workers working against 1069 officers Ratio is 1:1.24 No job Security

Standard Service rule & Labor law was followed properly.

Regular appointment against sanctioned set up.

No standard service code & labor law violated frequently.

Tendency to engage workers on daily payment basis.

continuation
Salary structure was rational. Retirement in due time -at the age of 57 for all. Satisfactory retirement benefit. Risk benefit was available Attitude of the management was sober Friendly Working Environment. Strong Trade Union Salary structure is not rational. Service extension only for top officials after retirement is very common (at the age of 60) Retirement benefit is not so satisfactory Risk benefit is absent Attitude of the management is hostile - Unfriendly Working Environment. Weak Trade Union / No TU

Out come
After so many project, loan, agreement, meetings, re structure, formation reformation, TA & with all other activities what is the result or out come? The most important out come is that people are not getting minimum electricity causing serious damage in their daily life & countries Development.

Result of reform
ORGANIZATIONAL Lack of coordination among the organizations Increase of over head expenditure in every organization Increase of corruption Creating moral & social difference among the workers & executives --Unfriendly working environment. Financial indiscipline. Ultimately handicapped organization.

Workers/ Employees Context

Weak Trade Union / No Trade Union No job security. Workers rights are being denied. Workers are being compelled to perform jobs for which he is not appointed for. Number of workers is reducing Existing Workers are over burden. Demoralized workers / Employees

 General people are not getting adequate & quality electricity. Different tariff in different area Tariff is increasing Electricity is going out of reach of poor people National organization BPDB purchasing electricity in higher price from IPPs & selling in lower price Ultimately financially being looser Generation is not increasing to meet the demand resulting adverse effect to other industries. Increasing un-employment & social unrest Self employed group are being job less & financilly looser. Service is commercial oriented not welfare oriented.

NATIONAL

CURRENT DEVELOPMENT
No trade Union scope as there is no worker in Electricity Generating Company-EGCB Introducing contract out / lease out system for workers as policy. Could not organize any TU in DESCO /REB Formation of TU is discouraged in DPDC Practically those who are taking initiative are being threatened to loose job officially.

PRESENT SITUTIONA
o Demand of Power 5050 MW o Installed Generation Capacity 5200 MW o Actual Generation is 3200-3400 MW o Short in Generation 2000-1800 MW o Transmission capacity (HT) 180% + of maximum demand o Most of the fertilizer factories are forced to shut down so that the natural gas can be used as fuel in the power stations.

THANK YOU
HAVE A GOOD DAY