Why is there so much variation in coal prices?

Currently, there are six thermal power plants operating in the country with imported coal. The centers have seen a significant increase in the price of coal. The question arises, if one center can buy coal at a lower price, why would another company buy it at a higher price? Will the Power Development Board (PDB) approve it?

The costs incurred by power plants include energy cost or fuel cost and operational expenses. Operational expenses include capacity payment, operation and maintenance costs, and O&M costs.

Even in fuel costs, some companies are accused of providing undue benefits. The price for fuel is determined at the time of the power plant contract. However, when the manufacturer decides at what price to buy coal, that price becomes obligatory for the PDB to pay.In the last 10 months, it can be seen that the Bangla-China Power Company charged 5.95 cent per unit for coal in July last year. The center is known as the Payra Thermal Power Plant. In the same month, two more power plants were producing electricity.

Among them, Bangladesh-India Friendship Power Company charged 7.74 cent per unit for coal. This center is known as the Rampal Thermal Power Plant. The center of Adani Power Company of India in Jharkhand charged 6.78 cent per unit for coal. Everyone knows this center as the Adani Thermal Power Plant.

Now among the power plants currently in production, Payra, S.S. Power, and Rampal Thermal Power Plants produce 1,320 megawatts of electricity. Outside of this, Adani produces 1,600 megawatts and Barishal produces 307 megawatts.

If we calculate the prices this month, we see that Rampal has charged 1.79 cent per unit more and Adani 0.83 cent per unit more than Payra.

Last year in August, Payra Thermal Power Plant charged 5.60 cent per unit for coal. In the same month, Rampal charged 5.93 cent per unit while Adani charged 6.87.

In September last year, the price of coal at Payra Thermal Power Plant dropped to 5.24 cent per unit, which was 5.81 cent at Rampal and 6.71 cent at Adani. In September last year, Barishal Electric Power Company also started production. In that month, they took 7.01 cent per unit for coal at the beginning of production.

In October last year, there were four power plants in operation. S.S. Power, owned by the S. Alam Group started production the same month.

When we calculate the coal prices, we see that in October last year, Payra was charging 5.42 cent per unit for coal. On the other hand, Rampal charged 5.78, Adani charged 6.42 cent, and S.S. Power charged 6.16 per unit.

In November last year, there were four similar power plants in production. Among them, Payra charged 5.43 cent per unit for coal. Additionally, Rampal charged 6.43, Adani 6.47, and Barishal Power Company 6.97 cent per unit for coal.

In December last year, Payra Thermal Power Plant charged 5.76 cent per unit for coal. Additionally, Rampal charged 6.64, Adani 6.12, and Barishal Power Company 7 cent per unit.

In January this year, Payra Thermal Power Plant charged 5.80 cent per unit, Rampal Thermal Power Plant charged 6.60, Adani 6.87, and Barishal Power Company 7 cent per unit.

Earlier, there was a widespread fluctuation in coal prices compared to the first three months of last year. In April last year, when coal prices were at their highest, Payra Thermal Power Plant charged 8.17 cent per unit, Rampal charged 9.86, Adani 8.53, and Barishal Power Company 11.50 cent per unit.

In May last year, Payra Thermal Power Plant charged 7.59, Rampal 8.41, Adani 8.50, and Barishal 10.55 per unit for coal.

In June last year, Payra Thermal Power Plant charged 7.09, Rampal 8.33, and Adani 7.81 cent per unit for coal.

The widespread fluctuation in coal prices at power plants is causing significant financial distress to the government. The government should determine an appropriate price for coal at power plants to prevent anyone from paying more than necessary.