Monday, 30 December, 2024
The Interim Government has issued a gazette notification repealing the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010, following approval from the Advisory Council.
The gazette, published on Thursday with the president's endorsement, states that the ordinance will be known as the "Quick Enhancement of Electricity and Energy Supply (Special Provisions) (Repeal) Ordinance, 2024," and will take immediate effect.
Despite the repeal, the gazette clarifies that contracts signed or actions taken under the now-repealed law will remain valid.
“Ongoing activities under agreements made under the repealed law shall continue or be concluded as if the law had not been repealed. Additionally, the government reserves the right to review any activities conducted under the law in the public interest and may take appropriate steps regarding those activities,” the gazette states.
The Awami League government, which came to power in 2009 amidst a severe power crisis, focused on increasing power generation capacity. Private sector companies were allowed to establish power plants through negotiations, bypassing the competitive tender process.
To facilitate this, the 2010 law was enacted, effectively shielding project approvals from legal challenges.
With the repeal of this law, however, projects approved under it can now be legally contested in court.
While significant progress has been made in power generation over the past 15 years, the approval of projects without competitive bidding has faced widespread criticism. Critics argue that this approach has contributed to higher electricity prices.
Following the fall of the Sheikh Hasina government, the High Court ruled on Nov 14 that two sections (6(2) and 9) of the 2010 law were unconstitutional in response to a writ petition. On Nov 20, the Muhammad Yunus-led Advisory Council gave its final approval for the law’s repeal.
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The Interim Government has issued a gazette notification repealing the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010, following approval from the Advisory Council.
The gazette, published on Thursday with the president's endorsement, states that the ordinance will be known as the "Quick Enhancement of Electricity and Energy Supply (Special Provisions) (Repeal) Ordinance, 2024," and will take immediate effect.
Despite the repeal, the gazette clarifies that contracts signed or actions taken under the now-repealed law will remain valid.
“Ongoing activities under agreements made under the repealed law shall continue or be concluded as if the law had not been repealed. Additionally, the government reserves the right to review any activities conducted under the law in the public interest and may take appropriate steps regarding those activities,” the gazette states.
The Awami League government, which came to power in 2009 amidst a severe power crisis, focused on increasing power generation capacity. Private sector companies were allowed to establish power plants through negotiations, bypassing the competitive tender process.
To facilitate this, the 2010 law was enacted, effectively shielding project approvals from legal challenges.
With the repeal of this law, however, projects approved under it can now be legally contested in court.
While significant progress has been made in power generation over the past 15 years, the approval of projects without competitive bidding has faced widespread criticism. Critics argue that this approach has contributed to higher electricity prices.
Following the fall of the Sheikh Hasina government, the High Court ruled on Nov 14 that two sections (6(2) and 9) of the 2010 law were unconstitutional in response to a writ petition. On Nov 20, the Muhammad Yunus-led Advisory Council gave its final approval for the law’s repeal.
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