Transcript POWER SECTOR REFORM

POWER SECTOR REFORM
-BANGLADESH
PRESENTED BY:
A.S.M. HAFIZUL HOSSAIN
WORKING PRESIDENT
CEC, PGCBSKU, BNANGLADESH.
[email protected]
BANGLADESH
General information
• Population
146.7 million
• Area
147570 Sq. Km.
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904/ sq. km.
53.3% with 38% women
3.3%
US $ 388
56%
62.3%
7.6%
Density of Population
Active lobour force
Un employment rate
Per capita GDP
Literacy Rate
Agriculture workers
Idustrial Workers
Formation of
East Pakistan Water & Power
Development Authority- EPWAPDA
in 1959
WATER WING
River Controll
Water management
SERVICE WING
Dredging & Mechanical
Equipment
POWER WING
Power -Generation
-Transmission
-Distribution
Gen. Capacity -88 MW
1971 Liberation of
BANGLADESH
1972 Bifurcation of EP WAPDA
Creation of Bangladesh Power Dev. Board
–BPDB a statutory body under Ministry.
Integrated policy to develop electricity
sector to provide electricity to all citizen as
it is the Constitutional provision.
Electricity declared as reserved Public
Sector.
Reform Process Started
1978 Creation of Bangladesh Rural
Electrification Board – REB.
-with a view to provide electricity to
the rural population.
1985 Liberalization in Govt. policy
- Electricity excluded from Reserved
sector
- Creation scope for private
participation
1991
Distribution system of Dhaka
Metropolitan City & surrounding urban
areas were separated from BPDB & a
new Public Sector Utility “Dhaka Electric
Supply Authority-DESA” was created.
Later gradually the surrounding areas
were handed over to REB.
IMPACT:
Increase of Over Head Expenditure
Non Coordination among the entities
Corruption Increased
Increase tendency of violation of rules
Financial indiscipline.
Ultimately handicapped organization.
Dismantled in 2008 – Taking the privilege
of Emergency
1995 Private Participation Legalized
under a new “ENERGY POLICY”
* Vertical separation of existing utility
in functional line i.e. Generation,
Transmission & Distribution.
* Private participation introduced
* Commercialization
1996 Creation of Power Grid Company
of Bangladesh Ltd.–PGCB Ltd.
A separate Electricity Transmission
Utility (HT Lines) under Public Sector.
Unbundling from BPDB & Registered
in Stock market. So far 20% share off
loaded
IMPACT
 Top Heavy Style of Management
 Highly Increase in Over Head
Expenditure.
 Job is not secured
 Irrational Salary structure among the
workers & Executives.
 Number of Worker / Staff is less than
executives.
 Existing workers right & facilities (as per
labor law) –denied.
Continuation
 Initially Management had no intention to
allow TU – Workers managed to organize
TU
 Provision for Engaging New workers on
Daily payment basis as part of policy. (Of
course union became successful to
change the attitude of the management to
some extent).
 Future service benefit like pension closed.
2001 Corporatization of BPDB owned
Ashuganj Power Station as a public
limited Company- APSCL.
2003 Corporatization of Distribution system
of 19 administrative District of
Western area named " West Zone
Power Distribution Company Ltd.”.
NEW EXPERIEMENT
2008 “Dhaka Electric Supply Authority-DESA”
Converted into new Company “Dhaka
Power Distribution Company –DPDC Ltd
resulting job loss of about 700 workers.
PDB
.
DESA
DPDC
WHAT NEXT ??
BANGLADESH POWER DEV. BOARD -BPDB
RURAL
ELECTRIFICA
TION BOARD
–REB 1978
RPCL
??
PBS
NORTH WEST
POWER GEN. CO
FUNCTIONING
UNDER PROCESS
DHAKA ELEC.
SUPPLUY
AUTHORITY –
DESA 1991
DHAKA ELEC,
SUPPLY CODESCO
PRIVATE
PARTICIPATIN –
IPP 1995
DHAKA
POWER DIST
CO. LTD --DPDC 2008
NORTH ZONE
POWER DIST.
CO
SOUTH ZONE
POWER DIST
CO
POWER GRID CO.
OF BANGLADESH
LTD –PGCB 1996
ASHUGANJ
POWER STN CO.
LTD -APSCL
2001
WEST ZONE
POWER DIST
CO. -WZPDPCO
2003
ELECTRICITY
GENERATING
CO. LTD -EGCB
?
??
MPEMR (Ministry)
IPP TENDERS
POLICY
GENERATION
RPCL
COMMISSION
REGULETARY
REGULETARYCOMMISSION
ISSU LICENCEES
GENERATION
TRANSMISSION
DISTRIBUTION
STATU ATHO.
POWER FLOW
INCOME FLOW
APSCL
BPDB
EGCB
IPPs
TRANSMISSION
PGCB
BPDB
DESCO
DESA
SET TARRIFS &
CODES
SINGLE BYER
BPDB
PBs
WZPDCo
DPDC
DISTRIBUTION
CONSUMERS
REB
LET US TAKE THE CASE OF PGCB FOR
STUDY.
BPDB
PGCB
 One CE managed total
Transmission System.
 7 GM managing the system –
some more posts are going to
be created.
 Pyramid style Management.
 Top Heavy Management.
 Staff Officer ratio was +7;1
 863 workers working against
1069 officers –Ratio is 1:1.24
 Job was secured.
 No job Security
 Standard Service rule & Labor
law was followed properly.
 No standard service code &
labor law violated frequently.
 Regular appointment against
sanctioned set up.
 Tendency to engage workers
on daily payment basis.
continuation
 Salary structure was rational.
 Salary structure is not rational.
 Retirement in due time -at the
age of 57 for all.
 Service extension only for top
officials after retirement is very
common (at the age of 60)
 Satisfactory retirement benefit.
 Retirement benefit is not so
satisfactory
 Risk benefit was available
 Risk benefit is absent
 Attitude of the management
was sober – Friendly Working
Environment.
 Attitude of the management is
hostile - Unfriendly Working
Environment.
 Strong Trade Union
 Weak Trade Union / No TU
Out come
After so many project, loan, agreement,
meetings, re structure, formation –
reformation, TA & with all other activities
what is the result or out come?
The most important out come is that
people are not getting minimum electricity
causing serious damage in their daily life
& countries Development.
Result of reform
ORGANIZATIONAL
Lack of coordination among the organizations
Increase of over head expenditure in every
organization
 Increase of corruption
Creating moral & social difference among the
workers & executives --Unfriendly working
environment.
Financial indiscipline.
Ultimately handicapped organization.
Workers/ Employees Context
Weak Trade Union / No Trade Union
No job security.
Workers rights are being denied.
Workers are being compelled to perform
jobs for which he is not appointed for.
Number of workers is reducing
Existing Workers are over burden.
Demoralized workers / Employees
NATIONAL
 General people are not getting adequate & quality
electricity.
 Different tariff in different area
 Tariff is increasing
 Electricity is going out of reach of poor people
 National organization BPDB purchasing electricity in
higher price from IPPs & selling in lower price –
Ultimately financially being looser
 Generation is not increasing to meet the demand –
resulting adverse effect to other industries.
 Increasing un-employment & social unrest
 Self employed group are being job less & financilly
looser.
 Service is commercial oriented not welfare oriented.
CURRENT DEVELOPMENT
No trade Union scope as there is no worker in
Electricity Generating Company-EGCB –
Introducing contract out / lease out system for
workers as policy.
Could not organize any TU in DESCO /REB
Formation of TU is discouraged in DPDC –
Practically those who are taking initiative are
being threatened to loose job officially.
PRESENT SITUTIONA
o Demand of Power 5050 MW
o Installed Generation Capacity 5200 MW
o Actual Generation is 3200-3400 MW
o Short in Generation 2000-1800 MW
o Transmission capacity (HT) 180% + of
maximum demand
o Most of the fertilizer factories are forced to
shut down so that the natural gas can be
used as fuel in the power stations.
THANK YOU
HAVE A GOOD DAY