Fears have emerged regarding the future of the publicly listed Khulna Power Company Limited. The audit firm has stated that this uncertainty has arisen because the government has not renewed the Power Purchase Agreement (PPA) with two of the company’s power plants after their expiration.

Following the audit of Khulna Power’s financial report for the 2024-25 fiscal year, the audit firm SF Ahmed & Co. Chartered Accountants mentioned such apprehensions.

Recently, the auditor’s opinion was published through the Dhaka Stock Exchange (DSE).

According to the auditor’s opinion, the term of the power purchase agreement for two of Khulna Power’s power plants—Unit-2 and Unit-3—with the Bangladesh Power Development Board (BPDB) expired on March 23, 2024.

Subsequently, an agreement was signed on a ‘No Electricity No Payment’ basis on April 29 of the same year.

According to that agreement, there is a provision to purchase electricity as per requirement within two years.

However, the auditor’s report noted that although more than a year and a half has passed since the contract term, the government has not yet purchased any electricity from Khulna Power.

Consequently, in reality, no opportunity has been created to sell the electricity generated by the company.

Meanwhile, although there is an agreement on a ‘No Electricity No Payment’ basis, the lack of a full-fledged PPA means the government is not obligated to buy electricity from the company.

This has created major uncertainty about whether the government will ever purchase electricity from Khulna Power in the future.

In light of this uncertainty, the audit firm has expressed doubts regarding Khulna Power Company Limited’s ability to continue its operations and its long-term business viability.

RS