Bangladesh’s government is considering shifting retail electricity distribution and customer management to private companies, while retaining electricity generation and wholesale supply under state control. Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud said the prime minister had given consent to move ahead with the idea, but stressed that it is not being implemented immediately and is still under study.

The government cites mounting financial pressure in the power sector, including Tk67,000 crore in overdue bills and a possible Tk41,000 crore subsidy requirement in the current fiscal year. The Power Development Board buys electricity at higher prices and sells it at lower, regulator-set rates to six distribution companies, with the government covering losses through subsidies. The minister said private management could improve efficiency, billing collection and supply operations.

Energy experts warn that privatization without a strong, independent regulator could raise consumer costs and create service disparities in remote, hilly or sparsely populated areas. They argue that strengthening the Bangladesh Energy Regulatory Commission, improving accountability and revising existing contracts should come before any transfer of distribution responsibilities. Concerns were also raised about workers’ futures and potentially opaque agreements.