United Power resumes operation of DEPZ plant

United Power Generation & Distribution Company Ltd (UPGDCL) has resumed operations at its 82-megawatt power plant in Dhaka Export Processing Zone after the restoration of the gas supply.

The gas supply to the facility was suspended on April 28 due to a pricing dispute with the supplier, the company said in a disclosure on the Dhaka Stock Exchange yesterday.

The company said the issue stemmed from a 2018 government directive that reclassified the plant under the captive power category instead of as an Independent Power Producer, resulting in higher gas tariffs.

UPGDCL, which signed power supply agreements with the Bangladesh Export Processing Zones Authority in 2007, said this classification contradicts the terms of its gas supply agreements with Titas and Karnaphuli.

Despite multiple attempts to resolve the disagreement, the conflict led to the disconnection of the gas supply.

The company said it had been working to restore operations and has now brought the plant back to full capacity.

United Power's total generation capacity currently stands at 895 megawatts.