Private sector power shift cuts costs
Handing electricity production over to the private sector has helped cut running costs and sharpen output, Electricity and Water Affairs Minister, His Excellency Yasser Humaidan, told Parliament.
He said this approach lifts a weight off public finances, as the government no longer has to foot the bill for new power stations, an outlay that would otherwise run into large sums.
'The move towards independent power production began over two decades ago,' he said. 'It's worked well. Costs have dropped, and efficiency has improved, thanks to modern technology and a flexible way of meeting growing demand.'
Humaidan said that generating one kilowatt-hour of electricity costs 21.7 fils, while transmission and distribution add another 7.5 fils.
Electricity subsidies last year stood at BD161 million, he said, with BD105 million going to the first tier of household bills.
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