Adani Power Jharkhand Limited has reduced electricity supply to Bangladesh due to unpaid bills, leaving the country with an energy deficit of over 1,600 MW. The reduction in power supply was a result of Bangladesh’s failure to settle outstanding payments, as Adani Power requested in a notice to the Bangladesh Power Development Board. The company has now reverted to the original Power Purchase Agreement pricing, which has caused coal costs to increase, and has warned of claiming capacity payments during any period of supply suspension. In response, Adani Group chairman Gautam Adani has written to Bangladesh’s interim government to resolve the issue.
Unpaid Bills Lead to Power Supply Reduction from Adani Power to Bangladesh
The Adani Group, an Indian conglomerate with a significant presence in the energy sector, has reduced electricity supply to Bangladesh due to unpaid bills. The reduction, amounting to over 1,600 MW, has left Bangladesh facing an energy deficit.
Background
Adani Power Bangladesh, a subsidiary of Adani Group, has been supplying electricity to Bangladesh under a long-term Power Purchase Agreement (PPA). The PPA was signed in 2010 and has a 25-year term. The power is generated from a coal-fired power plant in Rampal, Bangladesh.
Current Situation
In recent months, Bangladesh has been struggling to pay its electricity bills to Adani Power due to a shortage of foreign exchange reserves. Adani Power sent a notice to the Bangladesh Power Development Board (BPDB) in December 2022, demanding payment of outstanding dues.
As Bangladesh failed to settle the payments, Adani Power reduced electricity supply from January 2023. The company also reverted to the original PPA pricing, which has resulted in increased coal costs.
Adani's Response
Adani Group chairman Gautam Adani has written to Bangladesh's interim government to resolve the issue. In the letter, Adani expressed concerns about the unpaid bills and warned of claiming capacity payments during any period of supply suspension.
Bangladesh's Response
Bangladesh's interim government has stated that it is working to settle the unpaid dues. The government has also appealed to Adani Power to resume full electricity supply.
Top 5 FAQs
1. Why did Adani Power reduce electricity supply to Bangladesh? A: Adani Power reduced supply due to unpaid electricity bills from Bangladesh.
2. How much power reduction is Bangladesh facing? A: Bangladesh is facing a power reduction of over 1,600 MW.
3. What is the reason for Bangladesh's unpaid electricity bills? A: Bangladesh is facing a shortage of foreign exchange reserves, which has made it difficult to pay its electricity bills.
4. What is Adani Group requesting from Bangladesh? A: Adani Group is requesting Bangladesh to settle its unpaid bills and resume full electricity supply.
5. What is the current status of the issue? A: The issue is ongoing, with Bangladesh working to settle the unpaid bills and Adani Power warning of potential further supply reductions.
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