Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Draft Year: 
2006
Effective Start Year: 
2012
Effective End Year: 
2018
Scope: 
National
Document Type: 
Act
Economic Sector: 
Power
Energy Types: 
Power, Renewable, Bioenergy, Geothermal, Hydropower, Solar, Wave and Tidal, Wind
Issued by: 
Power Division Ministry of Power, Energy and Mineral Resources Government of the People’s Republic of Bangladesh
Overall Summary: 
This Act amends the previous version of the Electricity Act 1910. It addresses the supply and use of electrical energy and the generation of electricity.
Efficiency
EE action plans: 
Within the appointed date fixed by the Government, the Bangladesh Standards and Testing Institution (hereinafter referred to as the BSTI) shall complete formulation of national standards for all kinds of electrical articles, devices, commodities, materials, produces, products, methods, services and any type of such other things which consumes electricity in any form taking into consideration the optimum level of energy savings as well as the cost effectiveness.
Renewable Energy
RE action plans: 
The Government shall, after consultation with the Commission, prepare and notify a national policy, for promotion of generation of electricity based on renewable and other non-conventional sources of energy. Such policy shall include, inter alia, provisions for such subsidies, feed-in tariff, facilities and incentives, fiscal as well as others, as may be provided by the Government from time to time, to the producers of electricity using renewable sources of energy and the operators of any renewable energy system. --- The Authority shall carry out programmes that [...] accelerate wider application of [renewable energy] technologies in the market; [and] assess technical and commercial viability of technologies relating to the production, distribution, storage, and use of advanced renewable energy technologies.
Public competitive bidding/tendering: 
Selection of private entrepreneurs for the purposes of sub-section (1) and (2) above [Private Participation in transmission and distribution of electricity] shall be done through open competitive bidding, and the whole process shall be guided by the policy formulated under the respective sub-section.
Environment
Energy environmental priorities: 
A person authorised by a licence, or exempted from the requirement to obtain a licence, to generate, transmit, distribute or supply electricity (a) shall, in generating, transmitting, distributing or supplying electricity, have regard to the desirability of preserving natural beauty, of conserving flora, fauna and geological or physiographical features of special interest and of protecting sites, buildings and objects of architectural, historic or archaeological interest; and (b) shall do what the person reasonably can to mitigate any effect which such generation, transmission, distribution or supply would have on the natural beauty of the countryside or on any such flora, fauna, features, sites, buildings or objects.
Energy-water nexus: 
A person authorised by a licence [...] to generate, transmit, distribute or supply electricity [...] shall avoid, so far as reasonably practicable, causing injury to fisheries or to the stock of fish in any waters. --- A generation licensee shall, be entitled to construct, subject to conditions specified by the commission in consultation with the relevant water authority, water ways and pipelines, and to use water for its licensed activities and the relevant water authority shall not unreasonably deny such right.
Pricing
Energy pricing: 
A supply of electricity to any premises shall be on the basis of a standard tariff agreement and the requirements set out in this Act, any rules or regulations made thereunder and the distribution licence. --- [...] The prices to be charged by a distribution licensee for the supply of electricity by him in pursuance of section 9 shall be in accordance with such tariffs fixed by the Commission under section 34 of the Bangladesh Energy Regulatory Commission Act, 2003 (Act No. XIII of 2003) from time to time and conditions of his licence.---The Board and/or the Single Buyer may import electricity from and export to any foreign state using the transmission system of the country with previous sanction of the Government at such rate as may be determined by the Government.
Trade
Advance rulings: 
The Board and/or the Single Buyer may import electricity from and export to any foreign state using the transmission system of the country with previous sanction of the Government at such rate as may be determined by the Government.
Investment
Independent power producers: 
A person may construct, maintain or operate a captive generating plant and dedicated transmission lines for use in his own house, industry or other establishments. --- Every person, who has constructed a captive generating plant and maintains and operates such plant, shall have the right to open access for the purposes of carrying electricity from his captive generating plant to the destination of his use on payment of charges determined by the Commission [...]. ---The Government may [...] issue necessary policy guidelines for construction of any electricity transmission facility in the country in whole or in part, which might constitute a distinct part of the transmission system of the country [...] [and] to enable participation of private sector in the development, operation and maintenance of the electricity distribution network in the country.---The Government shall promote participation of the private investors, both local and foreign, in the field of power generation, harness competition, and ensure sustainable, economic and efficient operation of the power system.
Investment climate development: 
The Government shall promote participation of the private investors, both local and foreign, in the field of power generation, harness competition, and ensure sustainable, economic and efficient operation of the power system.
Public Private Partnerships: 
The Government shall promote participation of the private investors, both local and foreign, in the field of power generation, harness competition, and ensure sustainable, economic and efficient operation of the power system. --- The Government shall also create enabling environment for development of local private entrepreneurship for taking up power generation projects. --- The Government may, in consultation with the Commission, the electric utilities, and other interested persons and organisations, issue policy guidelines for introduction and promotion of public-private partnership in the power sector in line with the overall Governmental policy regarding public-private partnership.--- The Government may [...] issue necessary policy guidelines for construction of any electricity transmission facility in the country in whole or in part, which might constitute a distinct part of the transmission system of the country [...] [and] to enable participation of private sector in the development, operation and maintenance of the electricity distribution network in the country.
Bidding and Tendering: 
Selection of private entrepreneurs for the purposes of sub-section (1) and (2) above [Private Participation in transmission and distribution of electricity] shall be done through open competitive bidding, and the whole process shall be guided by the policy formulated under the respective sub-section.
Governance
National policy structure: 
The Government shall, after consultation with the Commission, prepare and notify a national policy, for promotion of generation of electricity based on renewable and other non-conventional sources of energy. Such policy shall include, inter alia, provisions for such subsidies, feed-in tariff, facilities and incentives, fiscal as well as others, as may be provided by the Government from time to time, to the producers of electricity using renewable sources of energy and the operators of any renewable energy system. --- The Government shall, from time to time, at such intervals not more than five years, formulate, update and issue the National Electricity Policy including the tariff policy [...]. The first one of the National Electricity Policy [...] shall be prepared no later than one year of coming into force of this Act. --- The Authority, within one year of formulation of the National Electricity Policy [...] shall prepare National Electricity Development Plan, both long-term (25 years and beyond) and medium-term (10-12 years).
Energy institutional structures: 
There shall be a body to be called the Bangladesh Electricity Authority for the purpose of carrying out the functions assigned or transferred to it by or under this Act. --- An Independent System Operator [...] shall be set up to ensure integrated operation of the power system throughout the country.
Statistics collection and management: 
The draft National Electricity Development Plan shall be published through the website of the Authority with proper notice in the newspapers and such other modes of communications [...], inviting suggestions and comments thereon from licensees, consumers, universities, research organisations, press, intelligentsia, local government institutions, and persons interested in the subject [...]. The Authority shall consider the suggestions and comments received, prepare a final draft, obtain opinion of the Commission and submit the same for approval of the Government.
Technology
Clean energy technology priorities: 
The Authority shall carry out programmes that [...] accelerate wider application of [renewable energy] technologies in the market. --- There shall be a National Electricity Research Centre, hereinafter referred to as the NERC, which will be an independent and fully autonomous body for all research-informed solutions, advice, and debate across the entire electricity sector, and will gradually become a ‘thought-leader’ of the sector. --- The Government shall create an enabling environment for research and development in the power sector for the purpose of promoting such research into, and such development of, new technologies relating to the generation, transmission or supply of electricity as appears to be necessary in the national interest.
Clean energy technology transfer: 
The Authority shall carry out programmes that [...] provide for the transfer of critical renewable energy technologies to the private sector.