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India has sought to impose a new charge on electricity supplied to Bangladesh, proposing a Settlement Nodal Agency (SNA) charge of 0.005 Indian rupees per unit.
The proposed charge would increase Bangladesh’s cost of importing electricity from India.
However, officials say it is not part of the electricity tariff; rather, it covers costs related to cross-border grid operations, scheduling, metering, energy accounting and settlement of electricity transactions.
The Power Division has sought the Finance Ministry’s opinion on signing an SNA agreement between Bangladesh Power Development Board (BPDB) and India’s NTPC Vidyut Vyapar Nigam Ltd (NVVN). A delay in reaching the agreement could complicate the import of 1,160 megawatts of electricity through NVVN, officials said.
India’s Central Electricity Regulatory Commission (CERC) initially proposed an SNA charge of 0.01 rupee per unit for cross-border electricity trade.
Following an appeal by BPDB, the rate was reduced to 0.005 rupee.
Bangladesh currently has arrangements to import up to 2,656MW of electricity from India under several agreements.
The SNA arrangement would apply to 1,160MW supplied through NVVN.
Officials said similar SNA charges are already being applied to India’s electricity trade with Nepal and Bhutan.
