Dbarta24 Report — Bangladesh’s electricity import costs are set to rise as India introduces a new operational charge on cross-border power transmission.
India’s authorities have requested an additional charge of 0.005 Indian Rupees (INR) per unit of electricity imported by Bangladesh.
Although the per-unit amount appears minimal, power sector officials warn that it will accumulate into a substantial long-term financial burden given the country’s high volume of electricity imports.
To facilitate the billing and operational process, initiatives have been taken to execute a Settlement Nodal Agency (SNA) agreement between India’s state-owned NTPC Vidyut Vyapar Nigam Limited (NVVN) and the Bangladesh Power Development Board (BPDB).
The Power Division sent a letter to the Finance Division on August 18 seeking its opinion on finalizing the agreement. Officials cautioned that delays in signing the agreement could disrupt the ongoing import of 1,160 megawatts (MW) of electricity managed via NVVN.
Understanding the SNA Charge
According to documents from the Power Division, India’s Central Electricity Regulatory Commission (CERC) initially proposed an SNA charge of 0.01 INR per unit for cross-border power trade.
Following an appeal by the BPDB, the charge was reduced by half to 0.005 INR per unit. India currently applies the exact same rate for its power trade with Nepal and Bhutan.
Indian authorities stated that the fee will cover administrative and operational expenditures related to scheduling cross-border power flows, processing meter data, reconciling supply records, and managing grid integration.
Scope of Import Contracts and Dependency
Bangladesh currently has arrangements to import up to 2,656 MW of power from India under various public and private sector contracts:
-
Government-Level & State Contracts (via NVVN): 250 MW from NTPC power plants, 300 MW from Damodar Valley Corporation (DVC), and 160 MW from Tripura State Electricity Corporation.
-
Private Sector Contracts (via PTC India & Sembcorp): 200 MW from Sembcorp Energy India through PTC India, alongside a direct contract for another 250 MW from Sembcorp.
Together, these facilities total 1,160 MW of power that falls under the new SNA agreement requirement.
In addition, Bangladesh imports 1,496 MW from Adani Power’s Godda plant in Jharkhand.
Officials noted that the power purchase agreement (PPA) with Adani already includes operational cost clauses, eliminating the need for a separate SNA contract for that specific import.
Annual Power Import Expenditures
Electricity imports from India involve multiple cost layers beyond the primary energy tariff, including wheeling and transmission fees, and now the added SNA charge.
Official data for the fiscal year 2024–25 indicates that Bangladesh imported approximately 16.41 billion units (kWh) of electricity across four primary sources—Adani Power, NVVN, PTC India, and Sembcorp—at a core electricity cost of BDT 16,999.75 crore.
A breakdown of fiscal year spending highlights:
-
Adani Power: BDT 11,933.44 crore for 8.03 billion units (the largest share).
-
NVVN: BDT 3,457.82 crore for power, plus an additional BDT 211.71 crore in wheeling charges.
-
PTC India: BDT 1,651.32 crore.
-
Sembcorp: BDT 1,957.56 crore.
Including wheeling tariffs, total import expenditures reached BDT 17,211.46 crore in FY 24–25.
Outlook and Financial Implications
While an additional 0.005 INR per unit seems small, the cumulative effect over billions of imported units will noticeably push up overall power procurement costs.
As domestic power generation continues to face fuel supply constraints—particularly ongoing shortages of natural gas—Bangladesh’s reliance on imported power could expand further, making such incremental charges an increasingly significant factor in the nation’s energy budget.