Energy Bangla

The technical evaluation committee of the Bangladesh Energy Regulatory Commission (BERC) has disagreed on a proposal of Titas Gas Transmission and Distribution Company Limited (TGTDCL) for raising gas tariff at retail level. It, however, recommended for 5.59 percent hike in retail gas tariff by the Pachimanchal Gas Company Limited (PGCL). Opposing the proposals of hiking gas tariff, Prof M Shamsul Alam, Energy Adviser of the Consumers Association of Bangladesh, said the government and the prime minister herself would face great trouble if gas tariffs are raised as per the proposal of Petrobangla and Energy and Mineral Resources Division. The Petrobangla has already misused the gas development fund already formed through charges collected on increased tariff since 2009. As per the BERC act, the officials responsible for misuse of the fund should be awareded three years’ imprisonment for violating the directive of BERC, Prof Alam said. He requested the BERC to seize the amount misused from the gas development fund from Petrobangla high-ups to make the corporation accountable. The BERC should take a move to stop offloading of shares of TGTDCL and other gas distribution companies, he recommended. He said TGTDCL has acted like the then East India Company that rules the country for their benefit. Ruhul Hossain Prince, Central Committee member of the Communist Party of Bangladesh said the gas tariff hike would encourage corruption at energy sector. He recommended the authority for supplying compressed natural gas (CNG) for mass transport by withdrawing it from private vehicles. CNG Re-fuelling Owners Association adviser Zakir Hossain Nayan, during the hearing on retail gas tariff hike, said, ‘I can not understand why the distribution companies proposed hike in CNG tariff when they are already making profit.’ Jahid Chowdhury, a steel re-rolling mill owner said the government act is contradictory as it allows gas connections for captive power plant to a section of investors. Opposing Jahid Chowdhury, some captive plants owners said besides using their industrial units by using electricity fro the captive plants, they supply additional electricity to the neighboring units. ‘On what basis has the government set the gas assets value?,’ questioned BUET Prof Nurul Islam, at the hearing. He said it’s not rational to raise gas tariff now considering import of high cost LNG in the future. The BERC committee, in a recommendation, said the TGTDCL would require revenue worth Tk 84,895.08 million to reach the break-even point considering proposed Tk 0.13 wheeling tariff hike and another Tk 0.8830 assets value during this fiscal. The current operating revenue of TGTDCL is Tk 88,022.23 million, which is Tk 3,127.15 million morte than the expenditure, the BERC committee said. The TGTDCL would require Tk 0.29 per cubic meter as distribution charge to run the company but it earns revenue of Tk 0.97 at present, the committee said. The company has earned Tk 170.68 million from illegal gas connections, it said. TGTDCL has got net profit of Tk 10,268.919 million in last fiscal year while it received net profit of Tk 9096.373 million, Tk 8,912.123 million and 9,177.477 million in the fiscal years 2012-13, 2011-12, 2010-11 respectively. Besides, the BERC committee, in a recommendation, said the PGCL would require revenue worth Tk 5,551.03 million to reach the break-even point considering proposed Tk 0.13 wheeling tariff hike and another Tk 0.8830 assets value during this fiscal. The current operating revenue of PGCL is Tk 5,266.01 million, which is Tk 285.02 million lower than the cost required to run the company comfortably, the BERC committee said. The PGCL would require to raise gas by 5.59 percent, the committee said. PGCL has earned net profit of Tk 354.24 million in last fiscal year while it received net profit of Tk 223.31 million, Tk 147.50 million and 86.95 million in the fiscal years 2012-13, 2011-12, 2010-11 respectively. BERC Chairman AR Khan chaired the hearing where BERC members Dr Salim Mahmud, Delwar Hossain, Rahman Morud and Md Maqsudul Hoque were present.