The United Group has also changed the law under the umbrella of the Awami League government. All such precedents have been set which are rare not only in Bangladesh but all over the world. Definitions, interpretations of the Act have all changed and United Power Generation and Distribution Company (UPGD) has emerged as a new entity.
Which cannot be defined in any definition of Bangladesh law, the demand that the Regulatory Commission rejected went to the High Court, and when it was rejected, the Supreme Court lost. United Group's demands have been fulfilled by ignoring all laws and regulations.
It is the only institution in the country that retains the power to set electricity prices at will. In this case United Group has become a parallel organization of BERC. In other cases, BERC sets the price of electricity but allows the United Group to sell it to various companies at their fixed rates.
There are two types of private power plants under the existing laws of Bangladesh. One is IPP, the other is captive. The power plant under IPP category will produce electricity according to the government's demand and give it to the government. There is no opportunity to sell outside of that. Again captive is called commercial category, in this case there is a limited opportunity to conditionally sell the surplus electricity outside after using it in its own factory. There too, BERC is vested in the Act with the power to fix rates.
However, United Power Generation and Distribution Company's 86 MW gas-based power plant in Dhaka EPZ and 72 MW gas-based power plant located in Chattogram EPZ did not comply with any law. Since the power plant does not sell power to the government, BERC fixed the gas price at Tk. 30 per cubic meter on a captive basis. At the same time the price of gas for IPP (Independent Power Producer) was Tk. 16.
The United Group started lobbying to get gas at Tk. 16, which led to correspondence between the Power Division and BERC. The then Chairman of BERC Abdul Jalil clarified that the law does not cover IPP in any way. So they have to pay the price of gas at the price of captives. The Regulatory Commission upheld the order ignoring the complaints of the Electricity Department. It is said that the conflict between the executive department and the regulatory commission started from there. As a result of which the executive department took away the process of setting gas and electricity rates from the hands of BERC. The ministry also increased the price of gas and electricity from time to time.
BERC's then Member (Gas) Maqbool E-Elahi Chowdhury told Barta24.com, "I found the matter as the eighth wonder." I don't understand how they got the IPP rates. When they come to BERC, we rejected them, then applied for review and got rejected there too. As far as I know the High Court also rejected them.
In response to a question, said that their project started as a captive. I don't see any chance of becoming an IPP. A man came in to press for United. We just tell him not to poke his nose again in the future.
Abdul Jalil, the then Chairman of BERC, told Barta24.com that legally there is no chance of the matter being an IPP. We gave that verdict. I don't know what happened after that.
United Group, close to the government, approached the court after losing in BERC. They lost there too. However, Moinuddin Hasan Rashid is the Chairman and Managing Director of United Group is not a person to stop there. The letter was brought out from the Prime Minister's office through the ministry.
The letter signed by Saiful Azad, Deputy Secretary of Power Division said, "In view of the approval of the Honorable Prime Minister, UPGD is facing loss in the production and sale of electricity by purchasing gas in the captive category from February 2023 at Tk. 30 (cubic meter). Taking into account the norms and the nature of gas supply/consumption pattern, UPGD should take necessary measures to issue licenses as IPPs to the two power plants set up in Dhaka, Chattogram EPZ effective from February-2023”.
The letter also mentions that, in the light of the said decision, the opinion of this division has been informed by directing BERC to take necessary measures in determining the electricity tariff for IPP gas category. The letter issued on March 25 this year asked for fixing the price of IPP class gas.
Cab energy advisor Dr. Shamsul Alam told Barta24.com, is the Prime Minister above the law, can approval be given only if she orders? The Prime Minister did not have the authority to grant it. This license is against the basic structure of the state. State constitution is inconsistent with law and policy. No private company has jurisdiction to grant distribution licenses. But United Group is doing the distribution.
Regarding the price of gas, he said, they are captive class, there is no opportunity to give gas to them at the rate of IPP.
Chairman and Managing Director of United Group Moinuddin Hasan Rashid told Barta24.com, "When we give it to PDB, we give it at IPP rate, and when we give it to Bepza, we give it at captive rate."
He had a question, how correct is the rejection of BERC, rejection of High Court and Supreme Court. In response to such a question, he said that our relevant department will be able to tell the matter well. Then when you question about the jurisdiction to fix electricity rates legally, you are collapsing due to network problems, later the line was cut. The United Group Chairman and Managing Director did not receive another call.
Section 27 of the BERC Act mentioned 5 types of licenses. These are power generation, energy transmission, energy marketing and distribution, energy supply and energy storage. So far nobody has been given an electricity distribution license except the state institutions, BPDB, REB, DPDC, DESCO, NESCO and WZPDCL. However, the United Group is selling electricity to various factories in the EPZ without a license. This is also against the BERC Act. At the consumer level, nobody except BERC has jurisdiction to fix electricity rates. Even if it is not in the law, these crimes are going on at the tip of everyone's nose. United Group is looting thousands of crores of profit by showing threats, extortion, and influence of the government. While other companies are buying gas at Tk. 30.75 per cubic meter, United Group is paying Tk. 16.75. During the previous government, an official of the company could be seen roaming around the secretariat all the time.
As per the decision of the Ministerial meeting held on January 2, 2018, captive power plant gas rates were fixed for UPGDCL. Again due to increase in gas price, the electricity department made him IPP for mysterious reasons.
In January 2023, gas prices were increased in the power, industrial and commercial sectors. Then the price of gas used in power plants was increased from Tk. 5.2 paisa per unit to Tk. 14. Captive electricity used by industrial customers is priced at Tk. 30 per unit. After that, the rate is increased by 75 paisa in each step.