Summit Power allowed reopening its two plants

The Bangladesh Rural Electrification Board (BREB) has allowed Summit Power to restart its two power plants from 7 February – that were shut down because of the expiry of the Power Purchase Agreement (PPA).

The Chandina Power Plant (Unit-2) with a capacity of 13.5 MW has remained closed since 15 November, and the Madhabdi Power Plant (Unit-2) with a capacity of 24.3 MW since 16 December 2021.

According to a disclosure by the company on the Dhaka Stock Exchange (DSE) website on Tuesday, Summit is now in the process of negotiating tariffs, and other terms and conditions with the BREB regarding PPA renewal.

The PPA of its Narayanganj Power Plant (Unit-1) with a capacity of 102 MW expired on 31 March last year.

Sources said the company had applied to the power division for extension of all its expired agreements but is yet to get permission.

According to the company's annual report, its 12 power plants are currently active, of which, one will expire in 2022, three in 2023, and four in 2024.

Meanwhile, in the first half of fiscal 2021-22, its revenue slightly increased to Tk2,028.49 crore, but net profit dropped 28% to Tk347.75 crore due to an increase in fuel prices in the international markets.

On Sunday, its share price closed at Tk40 per share at the DSE, which was 2.83% higher than the previous session.