POWER SECTOR REFORM -BANGLADESH

PRESENTED BY:

A.S.M. HAFIZUL HOSSAINWORKING PRESIDENT

CEC, PGCBSKU, BNANGLADESH.

asmhafiz@gmail.com

BANGLADESHGeneral information

• Population 146.7 million

• Area 147570 Sq. Km.• Density of Population 904/ sq. km.• Active lobour force 53.3% with 38% women• Un employment rate 3.3%• Per capita GDP US $ 388• Literacy Rate 56%• Agriculture workers 62.3%• Idustrial Workers 7.6%

Formation ofEast Pakistan Water & Power

Development Authority- EPWAPDAin 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 WAPDACreation 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

1991Distribution 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 ExpenditureNon Coordination among the entitiesCorruption IncreasedIncrease 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 ??

.

RURAL ELECTRIFICATION BOARD –REB 1978

NORTH WEST POWER GEN. CO

DHAKA ELEC. SUPPLUY AUTHORITY –DESA 1991

NORTH ZONE POWER DIST. CO

PRIVATE PARTICIPATIN –IPP 1995

POWER GRID CO. OF BANGLADESH LTD –PGCB 1996

? ??

ASHUGANJ POWER STN CO. LTD -APSCL 2001

BANGLADESH POWER DEV. BOARD -BPDB

DHAKA ELEC, SUPPLY CO-DESCO

WEST ZONE POWER DIST CO. -WZPDPCO 2003

ELECTRICITY GENERATING CO. LTD -EGCB

DHAKA POWER DIST CO. LTD ---DPDC 2008

SOUTH ZONE POWER DIST CO

FUNCTIONING

UNDER PROCESS

??PBS

RPCL

MPEMR (Ministry)

APSCL

EGCBBPDB

RPCLGENERATION

IPPs

TRANSMISSION

PGCB

SINGLE BYER

DISTRIBUTION

DESCO

WZPDCo

BPDB

DPDC

BPDB

PBs

REB

RE

GU

LE

TA

RY

CO

MM

ISS

ION

RE

GU

LE

TA

RY

CO

MM

ISS

ION

CONSUMERS

GENERATION

TRANSMISSION

DISTRIBUTION

STATU ATHO.

POWER FLOW

INCOME FLOW

IPP TENDERS POLICY

ISSU LICENCEES

SET TARRIFS & CODES

DESA

LET US TAKE THE CASE OF PGCB FOR STUDY.

BPDB PGCB One CE managed total

Transmission System.

7 GM managing the system –

some more posts are going to

be created.

Pyramid style Management. Top Heavy Management.

Staff Officer ratio was +7;1 863 workers working against

1069 officers –Ratio is 1:1.24

Job was secured. No job Security

Standard Service rule & Labor

law was followed properly.

No standard service code &

labor law violated frequently.

Regular appointment against

sanctioned set up.

Tendency to engage workers

on daily payment basis.

continuation Salary structure was rational. Salary structure is not rational.

Retirement in due time -at the

age of 57 for all.

Service extension only for top

officials after retirement is very

common (at the age of 60)

Satisfactory retirement benefit. Retirement benefit is not so

satisfactory

Risk benefit was available Risk benefit is absent

Attitude of the management

was sober – Friendly Working

Environment.

Attitude of the management is

hostile - Unfriendly Working

Environment.

Strong Trade Union 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 reformORGANIZATIONALLack of coordination among the organizationsIncrease of over head expenditure in every

organization Increase of corruptionCreating moral & social difference among the

workers & executives --Unfriendly working environment.

Financial indiscipline.Ultimately handicapped organization.

Workers/ Employees Context

Weak Trade Union / No Trade UnionNo 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 reducingExisting Workers are over burden.Demoralized workers / Employees

NATIONAL 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.

CURRENT DEVELOPMENTNo 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 SITUTIONAo 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 YOUHAVE A GOOD DAY