Dhaka, Jan. 22 -- Privately owned power producers are facing growing financial instability as payment delays by the state-run utility are followed by penalty deductions, raising concerns over fairness, contract compliance and energy security.

Industry representatives warn that the practice is undermining investor confidence and could disrupt electricity supply ahead of peak demand periods.

Independent power producers (IPPs) allege that despite chronic delays in bill payments by the Bangladesh Power Development Board (BPDB), the interim government has allowed penalties to be imposed selectively, in breach of power purchase agreements (PPAs).

Sources said the state-run Bangladesh Power Development Board (BPDB) deducted around Tk 2.49 bil...