Power sector reform in Bangladesh: Electricity distribution system

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.