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Power sector reform in Bangladesh: Electricity distribution system

Author

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  • Alam, M.S.
  • Kabir, E.
  • Rahman, M.M.
  • Chowdhury, M.A.K.

Abstract

There have been a number of reforms in the power sector in Bangladesh since her independence, but these reforms failed to bring desired improvements in the power sector. Among the three main components of the power system, recent reform activities were centered around generation and transmission. The most pressing problem in the power sector has been with the distribution system, which is characterized by heavy system loss and poor collection performance; however, the distribution system seldom got the priority in reform initiatives. Thus, it becomes very difficult to derive benefits from the reforms while leaving the distribution system untouched. This implies that priority in reform must be given to the distribution. To make it efficient and effective, its administration must be restructured. At the same time, its performance should be monitored continually on the basis of particular performance indicators. It is found that system loss in any power distribution system in Bangladesh should not exceed 10%, i.e. collection–import (CI) ratio should be kept above 90%. To maintain the system loss and the CI ratio at the recommended level, the malpractice by the utility personnel must be stopped fast. This will help to achieve economic sustainability.

Suggested Citation

  • Alam, M.S. & Kabir, E. & Rahman, M.M. & Chowdhury, M.A.K., 2004. "Power sector reform in Bangladesh: Electricity distribution system," Energy, Elsevier, vol. 29(11), pages 1773-1783.
    • Handle: RePEc:eee:energy:v:29:y:2004:i:11:p:1773-1783
    DOI: 10.1016/j.energy.2004.03.005
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    Cited by:

    1. Ahamad, Mazbahul & Tanin, Fahian, 2013. "Next power generation-mix for Bangladesh: Outlook and policy priorities," Energy Policy, Elsevier, vol. 60(C), pages 272-283.
    2. Sultana Sharmin & Helmut Yabar & Delmaria Richards, 2023. "Green Energy Optimization in Dinajpur, Bangladesh: A Path to Net Neutrality," Sustainability, MDPI, vol. 15(2), pages 1-29, January.
    3. Fujii, Tomoki & Shonchoy, Abu S., 2020. "Fertility and rural electrification in Bangladesh," Journal of Development Economics, Elsevier, vol. 143(C).
    4. Ejaz Gul & Imran Sharif Chaudhry, 2016. "Socio-Economic Analysis of Household Energy Security: Evidence from 3D Energy Losses Surface Maps (ELSMs)of a Town Using Conjuncture of Factors Matrix, Digital and Mathematical Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 1019-1041.
    5. Islam, Aminul & Chan, Eng-Seng & Taufiq-Yap, Yun Hin & Mondal, Md. Alam Hossain & Moniruzzaman, M. & Mridha, Moniruzzaman, 2014. "Energy security in Bangladesh perspective—An assessment and implication," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 154-171.
    6. Fujii, Tomoki & Shonchoy, Abu S. & Xu, Sijia, 2018. "Impact of Electrification on Children’s Nutritional Status in Rural Bangladesh," World Development, Elsevier, vol. 102(C), pages 315-330.
    7. Abubakar Mohammed Atiku & Suraya Ismail & Farah Roslan & Ali Umar Ahmad, 2022. "The Effect of Electricity Distribution Loos, Electricity Power Consumption, Electricity Intensity on Energy Consumption in West Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 361-369, September.
    8. Ahmed, Shamsuddin & Islam, Md Tasbirul & Karim, Mohd Aminul & Karim, Nissar Mohammad, 2014. "Exploitation of renewable energy for sustainable development and overcoming power crisis in Bangladesh," Renewable Energy, Elsevier, vol. 72(C), pages 223-235.
    9. Shahidur R. Khandker, Douglas F. Barnes, and Hussain A. Samad, 2012. "The Welfare Impacts of Rural Electrification in Bangladesh," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    10. Mozumder, Pallab & Marathe, Achla, 2007. "Causality relationship between electricity consumption and GDP in Bangladesh," Energy Policy, Elsevier, vol. 35(1), pages 395-402, January.
    11. Khandker, Shahidur R. & Barnes, Douglas F. & Samad, Hussain A., 2009. "Welfare impacts of rural electrification : a case study from Bangladesh," Policy Research Working Paper Series 4859, The World Bank.
    12. Singh,Anoop & Jamasb,Tooraj & Nepal,Rabindra & Toman,Michael A., 2015. "Cross-border electricity cooperation in South Asia," Policy Research Working Paper Series 7328, The World Bank.
    13. Shahidur R. Khandker & Douglas F. Barnes & Hussain A. Samad, 2011. "The Welfare Impacts of Rural Electrification in Bangladesh," The Energy Journal, , vol. 33(1), pages 187-206, January.
    14. Bernhard G. Gunter, 2008. "Mineral Extraction in Bangladesh: Some Fundamental Reform Suggestions," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 3, Bangladesh Development Research Center (BDRC).
    15. Faisal Jamil & Eatzaz Ahmad, 2014. "An Empirical Study of Electricity Theft from Electricity Distribution Companies in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(3), pages 239-254.

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