The Technical Evaluation Committee (TEC) of the Bangladesh Energy
Regulatory Commission (BERC) has recommended hiking the tariff of gas
distribution by 6.73%, after evaluating the proposals submitted by the
Pashchimanchal Gas Company Limited (PGCL).
However, energy experts, consumers and civil society members have
strongly opposed the proposal of gas tariff hike by the PGCL as the
company has a poor prospect for expansion of new connections and
business growth. Energy Experts claimed it.
TEC recommended hiking the gas tariff by Tk 0.0170 per cubic meter in
the fiscal year 2016-17 mentioning that, the company should improve
efficiency to reduce management expenditure rather than raising the
tariff for fossil fuel.
BERC has arranged a public hearing on Wednesday at the TCB Bhaban in
Dhaka’s Karwan Bazar in response to the proposal submitted by the PGCL
to increase the transmission tariff of gas. The hearing was headed by
AR Khan, the chairman of BERC with his two fellow members Maqsudul
Haque and Rahman Murshed.
Earlier PGCL submitted a proposal to increase gas prices by 94.92%
which means hiking the tariff from Tk 0.2521 to Tk 0.7614 for per
cubic meter of gas. According to the TEC, the PGCL would require Tk
583.32 million in FY 2016-17 to run the company properly. Of the
amount, the company would able to earn Tk 562.82 million. It means the
company would require additional 20.50 million Tk. PGCL managing
director ASM Faruq claimed that the claims of price hike were legit
and practical.
However, Prof. Shamsul Alam, the adviser to the Consumers’ Association
of Bangladesh (CAB), raised a set of questions regarding its
justification. He alleged that there is no transparency in the
earnings and expenditures of PGCL.
Gono Sanghati Andolon coordinator Jonaid Saki, Ruhul Hossain Prince,
and other concerned energy experts of the country had their speeches
at the hearing and refused the idea of gas tariff hike