The United Group, which has become a mafia in the electricity sector, is still alive. The company has continued to cut into the pockets of customers with its two power plants. Many have expressed surprise that the two power plants, which ignored the rules and regulations and even the High Court orders during the Awami League government, are still operating.
The two 86 MW gas-based power plants in the Dhaka EPZ and the 72 MW gas-based power plants in the Chattogram EPZ have become golden eggs for the United Group. While the cost of generating electricity per unit with gas is Tk.4.17, it is selling that electricity to various customers at a rate of Tk. 10.88. In some cases, this rate is much higher.
The plants are capable of generating 1 lakh 58 thousand units of electricity per hour. The total for a day (24 hours) stands at 37 lakh 92 thousand units. If there is a profit of Tk. 1 per unit, it is a huge amount, there is a profit of almost Tk. 4 (after operating expenses). The company is raising smoke and selling at a cheaper rate than the government electricity distribution company. There is an attempt to fool people by saying this.
The Power Development Board buys electricity from various sources. Just as there is gas-based electricity priced at Tk. 4.17, there is coal-based electricity priced at 8 to 12 taka, furnace oil priced at 16-18 taka and diesel-based electricity priced at 28 taka. It is natural that the average price of all of them will be much higher. But the United Group, which was close to the government, continues to generate electricity from the lowest cost source (gas) and cut into the pockets of the customers.
There has been an unprecedented fraud in the gas price of the power plant. At that time, the gas price for captive power (power plants for own use in industries) was 30 taka (per cubic meter), and for government power plants it was 16 taka. When United Group demanded gas prices at the rates of government power plants, the matter was referred to the Bangladesh Energy Regulatory Commission.
The Regulatory Commission rejected United Group's claim. Then the matter was referred to the High Court, and when it was rejected there, United Group lost even after going to the Supreme Court. Then, ignoring all laws and regulations, gas prices were reduced by executive order. It is said that the gas prices were reduced in a special agreement with the high echelons of the then government. It is said that a share of the profits reached various people in the country and abroad.
Not only is there fraud in gas prices, United Group is the only organization in the country that reserves the power to determine electricity prices according to its own wishes. In this case, United Group has become a parallel organization to BERC. In other cases, BERC determines electricity prices, but United Group sells them to various companies at their determined prices. Under the existing law of Bangladesh, there are government, private power plants and captive power plants. Power plants in the IPP category will produce electricity according to the government's needs and sell it to the government. They have no opportunity to sell electricity outside. Again, captive is called the commercial category; in this case, there is a limited opportunity to sell surplus electricity outside after using it in their own factories, subject to conditions. There too, BERC has been given the authority to set prices in the law.
However, no law was followed in the 86 MW gas-based power plants located in the Dhaka EPZ area of the United Power Generation and Distribution Company and the 72 MW gas-based power plants located in the Chattogram EPZ. Since the power plant does not sell electricity to the government, BERC set the gas price at 30 taka per cubic meter considering it captive. At the same time, the gas price for IPPs (Independent Power Producers) was 16 taka.
It is said that the conflict between the Regulatory Commission and the executive branch began from here. Following this, the executive department snatched the process of setting gas and electricity prices from BERC. The ministry started pressuring the United Group to set a price of 16 taka. Correspondence started between the Power Division and BERC regarding this.
The then chairman of BERC, Abdul Jalil, made it clear that the law does not cover it as IPP in any way. Therefore, they will have to pay the captive price (30 taka). The Regulatory Commission, ignoring the Power Division's eye-rolling, upheld the order.
The then chairman of BERC, Abdul Jalil, told Barta24.com that legally, there is no chance for the matter to become IPP. We gave that ruling. I do not know what happened later.
The then member (Gas) of BERC, Maqbul E-Elahi Chowdhury, told Barta24.com, that the matter seems like the eighth surprise to me. I do not understand how they got the IPP price. When they came to BERC, we rejected them, later they applied for review and it was rejected there too. As far as I know, the High Court has also rejected them.
In response to a question, he said, their project started as a captive. I don't see any chance of becoming an IPP. A person came to pressure United. We just told him to never interfere in the future.
In response to a question, CAB's energy advisor Dr. Shamsul Alam told Barta24.com that this license is against the basic structure of the state. The constitution of the state is in conflict with the law and policies. No private company has the authority to issue a distribution license. But United Group is doing distribution. Is the Prime Minister above the law, can approval being given only when she gives an order? The Prime Minister did not have the authority to give this.
Regarding the gas price, he said, they are captive workers. There is no chance of giving them gas at IPP rates.
Under the umbrella of the Awami League government, the United Group has set precedents that are rare not only in Bangladesh but all over the world. The definition and interpretation of the law have all been changed, and the United Power Generation and Distribution Company (UPGD) have emerged as a new entity. The people of PDB themselves were hoping that violence would decrease after the change of government. But it is still spreading due to the touch of invisible magic.
The group emerged as a mafia in the power sector during the Awami League government. There are allegations of rigging the tender for the construction of a 195 MW power plant in Ashuganj. They syndicated with the Ashuganj Power Station Company and strategically canceled the tenders of others and took the work themselves at a high price. Although 29 percent of the power plant was supposed to be given to the Ashuganj Power Station Company, only 6 percent of the shares were given. The 2 power plants located in Khulna have been sold three times. The KPCL-2 (115 MW) power plant was contracted for the first 5 years in 2010. Although they withdrew their investment in the first 5 years, they again blew away several thousand crores of taka in the name of capacity premium in 2016.
Barta24.com contacted United Group Chairman and Managing Director Moinuddin Hasan Rashid. He was asked how right the BERC rejection, the High Court and the Supreme Court rejection were. In response, he said, our concerned department can speak well on the matter.