Government plans to privatise power distribution, says energy minister

The government is planning to hand over Bangladesh's electricity distribution system to the private sector, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud Tuku has said, adding that the proposal has received the Prime Minister's approval.

He made the remarks on Wednesday (22 July) while speaking at the "Energy Security and Transformation of Bangladesh" conference in Dhaka.

The minister said the government could continue generating electricity and selling it at the wholesale level, but the responsibility for distributing power to consumers should rest with private companies.

"I want to privatise all distribution companies," he said.

Referring to neighbouring India, Tuku said private companies have successfully managed electricity distribution in cities such as Kolkata, Mumbai and Delhi. He expressed confidence that Bangladeshi entrepreneurs are also capable of taking on the responsibility.

The minister invited local investors to submit proposals for entering the sector, saying the government would give them serious consideration. He argued that greater private sector participation would improve accountability, enhance service quality and make bill collection more efficient.

Tuku also voiced support for allowing the private sector to participate in the import of petroleum products.

He said there was no requirement for the government alone to handle such imports, adding that greater competition would reduce pressure on the state and improve market efficiency.