Adani Power’s Decision on Electricity Supply Reduction
Adani Power’s fully-owned subsidiary, Adani Power Jharkhand Limited (APJL), has cut electricity supply to Bangladesh. This decision came as a result of unpaid bills totaling $846 million from the Bangladesh Power Development Board (PDB).
Significant Reduction in Power Supply
According to Power Grid Bangladesh PLC, Adani Group reduced electricity supply on Thursday night, leading to a major power shortage in Bangladesh on Friday. The power supply, which initially stood at 1,600 MW, dropped significantly to 700 MW.
Adani Group’s Request and Delayed Payments
Adani Group had previously requested that Bangladesh’s energy secretary ensure payment by October 30. They also warned of potential suspension if the payment was not received by October 31. PDB officials stated that they are making weekly payments of $18 million, although the required weekly amount is over $22 million, causing arrears to accumulate.
Dispute Over Coal Prices and Tariff Adjustment
Last year, Adani Power and Bangladesh had a dispute over coal prices, which was temporarily resolved with a supplemental agreement allowing reduced tariffs. With the supplemental period ending, Adani has reinstated the original tariff as per the Power Purchase Agreement (PPA).
