The power sector in Bangladesh has been undergoing a process of significant institutional change. Since 1972 the operation of the power sector has been the responsibility of the Bangladesh Power Development Board (BPDB), reporting to the Ministry of Power, Energy and Mineral Resources (MPEMR). This responsibility has been subdivided over the years, initially with the setting up of the Rural Electrification Board (REB) in 1978, and the subsequent creation of a co-operative based model for expansion of access, the co-operatives being known as Palli Bidyuit Samity (PBS). In 1991 the responsibility for power distribution in Dhaka was vested with the Dhaka Electric Supply Authority (DESA). Since the mid 1990s, the Government of Bangladesh has continued with the vertical unbundling of the sector, through the creation of separate publicly owned entities for generation, transmission and distribution, and the development of a Single Buyer market model. This has led to the entry of a number of Independent Power Producers (IPPs) into the market. The unbundling has led to the creation of a number of independently managed entities which are gradually taking over the operational responsibility previously vested with BPDB, thereby changing its status to that of a holding Company, with management control being decentralized into the business units. As part of the ongoing program of power sector reform, a regulatory body,' the BERC (Bangladesh Energy Regulatory Commission) has been set up, and a unit called Power Cell has been set up within the MPEMR to drive the reform process forward.
* On 23rd November 1996 BPDB formed Meghnaghat Power Company (MPC) Ltd. * On 16th February 2004 the Meghnaghat Power Company (MPC) Ltd. has been re-named as Electricity Generation Company of Bangladesh (EGCB) Ltd. (an Enterprise of BPDB). Electricity Generation Company of Bangladesh (EGCB) Ltd. (An Enterprise of Bangladesh Power Development Board) was incorporated with Registrar of joint stock companies on February 16, 2004 to produce and sale of Electricity. EGCB has a plan to become a leading electricity generation company across the country. Electricity generation-related business services are among the fastest growing and key area of the economy, EGCB intends to capitalize on the opportunity in that area. The company's major share is currently held by BPDB.