Adani Power reduces electricity supply to Bangladesh over unpaid bills, causing major shortages.
In a significant development, Adani Power Jharkhand Limited (APJL) has ceased half of its electricity supply to Bangladesh due to outstanding bills amounting to $846 million.
This decision, confirmed by local media on Friday, has triggered major power shortages in Bangladesh, leaving the country grappling with a deficit of over 1,600 megawatts (MW) of electricity.
Data from Power Grid Bangladesh PLC revealed that Adani’s plant reduced its supply on Thursday night, causing the 1,496 MW facility to operate at a mere 700 MW from a single unit.
The supply cut has prompted concerns among Bangladeshi officials, who are now facing increased pressure to resolve the outstanding payments to Adani.
Outstanding Payments and Agreements
Earlier correspondence from Adani Power to the Bangladesh Power Development Board (PDB) demanded the clearance of dues by October 30.
The letter, dated October 27, warned that failure to settle the payments would lead to suspension of power supply, effective October 31.
Despite partial payments in the past, a PDB official noted that Adani has increased its charges beyond previous months, exacerbating the payment crisis.
Price Dispute and Future Actions
The ongoing dispute stems from the pricing of coal used for power generation.
The PPA stipulates coal prices based on the average of two coal indices, which has led to escalating costs.
Adani has reiterated its rights under the PPA to recover capacity payments during the suspension period.
Additionally, Gautam Adani has reached out to the interim government in Bangladesh, led by Professor Muhammad Yunus, emphasizing the urgency of settling the outstanding dues.
