Meta Data
Revision of previous policy?: 
Draft Year: 
Effective Start Year: 
Document Type: 
Economic Sector: 
Energy Types: 
Issued by: 
Power Division Ministry of Power, Energy and Mineral Resources Government of the People’s Republic of Bangladesh
Overall Summary: 
The Policy Guidelines for Power Purchase from Captive Power Plant express the intent of the Government of Bangladesh to reduce the gap between supply and demand for electricity, and to make best use of energy resources. In particular, the GOB declares following Guidelines to (a) harness the surplus capacity of captive power plants, and (b) permit electric utilities to purchase electricity from captive power plants. The document is divided in the following sections: Objective; Definitions; Opening of the Power Market to CPPs; Approvals and License Requirement; Tariff for Power Purchase from Captive Power Plant; Power Off-take; Transmission Charges; Conditions of Supply; Period of Supply; Agreement; Custom Duty, Vat and Income Tax; Miscellaneous; Provisional Power Purchase Agreement .
Energy environmental priorities: 
The Captive Power Plant will need to comply with all relevant laws of Bangladesh including Environmental Standards.
Energy pricing: 
Each CPP will be able to sell electricity at tariffs approved by the BERC: (a) to its Host Distribution Licensee, (b) to any other Distribution Licensee. --- Any Captive Power Plant licensee may sell power to a Distribution Licensee at rates established by the BERC pursuant to tariff criteria outlined in the Policy Guidelines. --- The power purchase tariff shall have a structure that reflects the components of underlying costs to the extent reasonable, and can also vary by peak and off-peak period. --- The power purchase tariff shall be expressed in Taka/kWh.
Advance rulings: 
The Imported project materials shall be subject to payment of Customs Duty and IDSC at clearance stage.
Independent power producers: 
For selling electricity, the Captive Power Plants shall have to obtain license from the Bangladesh Energy Regulatory Commission (BERC). --- CPP will have to enter into an Agreement with the electric utility for the sale of electricity on terms mutually agreed upon and such Agreement shall be approved by the BERC.