United Power Generation and Distribution Company Ltd has resumed operations at its power plant in Dhaka Export Processing Zone after the restoration of gas supply.
Earlier on April 28, the state-owned Titas Gas Transmission and Distribution Company suspended the gas supply to United Power›s 86 MW power plant, claiming that it owed Titas Tk 478 crore in unpaid bills.
Confirming the matter, Shamim Miah, head of regulatory affairs of United Group, told New Age that the gas connection was restored to the plant on Thursday night.
He added that as the plant is the sole power supplier to the DEPZ›s 90 factories, they are preparing the plant quickly for full production.
According to the company, they paid their bills according to the directives of the BERC and the energy ministry issued in 2008 and 2009, which placed the plant under the IPP rate.
However, as per a government directive of 2018, Titas reclassified the plant under the captive power category, resulting in higher gas tariffs.
United Power signed power supply agreements with the Bangladesh Export Processing Zones Authority in 2007.
The reclassification of the terms of its gas supply agreements with Titas and Karnaphuli created contradictory circumstances, which led to the suspension of the gas supply.
The Dhaka Export Processing Zone industrialists repeatedly urged the government to resolve the existing electricity issues as soon as possible.