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Dhaka Thursday,  Mar 28, 2024

TEC Opposed Hike Gas Tariff Of Karnaphuli Company

EB Report

Technical Evaluation Committee (TEC) of Bangladesh Energy Regulatory Commission (BERC) recommended for not hiking the gas distribution charge of Karnaphuli Gas Distribution Company Ltd (KGDCL). The company would earn an additional revenue of Tk 267.07 million in the current fiscal year 2016-17, claimed the TEC after evaluating the financial statement.

TEC claimed that the KGDCL is receiving Tk 0.2428 for per cubic meter of gas where, they would only require Tk 0.1565 for per cubic meter to attain their optimum revenue. So, they are already getting an additional Tk 0.0863 for distributing per cubic meter of gas, which would generate a total revenue of Tk 880.52 million in the current year and again its Tk 267.07 million surpluses to their basic needs.

Earlier KGDCL submitted its proposal to BERC to hike the distribution charge from Tk 0.2428 to Tk 0.7900 for per cubic meter of gas. BERC has arranged the public hearing on Sunday at the TCB Bhaban in Dhaka’s Karwan Bazar in response to the proposal submitted by KGDCL to increase the gas distribution charge. The hearing was headed by AR Khan, the chairman of BERC with his two fellow members Maqsudul Haque and Rahman Murshed.

Prof Nurul Islam said, there is no reason for gas and power price hike as the utility companies are making a profit and if the utility companies use fuel efficiently they will make more profit. So our focus should be on improving the efficiency, he added. The government should disclose the special tariffs at which rate the gas is being supplied to some foreign companies like Lafarge and Kafco and if needed the authority may raise theirs tariff not the domestic’s, he remarked.

Consumer Association of Bangladesh (CAB) energy adviser Prof Shamsul Alam proposed a separate tariff for public and private transport services. He also raised questions on proper utilization of the Workers’ Welfare Fund and system loss of KGDCL.

Different consumer’s right groups, Experts and trade bodies including Bangladesh CNG Filling Station & Conversion Workshop Owners Association strongly opposed the price hike proposal.

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