Photo : Messenger
The Bangladesh Energy Regulatory Commission (BERC) is going to increase gas prices for non-metered consumers, who are using more gas but paying less compared to metered consumers. This imbalance has led to an increase in system losses for the regulatory agency.
All gas distributors, including the largest one, Titas Gas, have applied to the BERC for a gas price hike. However, other distributors, despite not incurring the same system losses, have also submitted applications.
However, the BERC has instructed the scrutiny of applications for increasing the gas bills of non-metered residential customers. A committee, led by Director (Gas) Engineer Fazle Alam, has already been formed for this purpose.
BERC Chairman Nurul Amin informed recently that the proposal to increase Titas Gas bills would be discussed in the commission's meeting. He told The Daily Messenger on Monday, “We sought the consent of Petrobangla in this regard. Recently, Petrobangla gave the green signal as several other gas distribution companies also applied for a price hike.”
Non-metered residential customers are currently charged fixed gas bills, regardless of usage. Titas Gas has applied to the BERC to increase the existing charges for one stove from 55 cubic meters (Tk. 990) to 76.65 cubic meters (Tk. 1379.70) and for two stoves from 60 cubic meters (Tk. 1080) to 88.44 cubic meters (Tk. 1591.92). The application was submitted to the BERC in May of this year.
Former BERC member (Gas) Maqbul E-Elahi Chowdhury said, “I think it should be below 50 cubic meters. 55 and 60 cubic meters were set for the first time.”
In response to a question, Maqbul E-Elahi Chowdhury said that of the 3.5 lakh prepaid meters they had, it was observed that, on average, less than 45 cubic meters were being used.
In June, an order increased the existing rate for residential prepaid meter users from Tk 12.60 to Tk 18. Consequently, the price of a non-metered single stove increased from Tk 950 to Tk 990, and for two stoves, it increased from Tk 975 to Tk 1080.
BERC last increased gas prices on June 5, 2022. Statistics from prepaid meter users indicate that, on average, one stove uses 40 cubic meters, and two stoves use a maximum of 50 cubic meters. Based on the usage figures of prepaid customers, the consumption for one stove was reduced from 73.41 cubic meters to 55 cubic meters, and for two stoves, it was reduced from 77.41 cubic meters to 60 cubic meters.
A decision has been made to restore BERC's responsibility for determining gas transmission and distribution charges. Sources in the Department of Energy and Mineral Resources have confirmed that the decision to increase transmission charges has been reversed in the executive order.
According to the audit report, Titas Gas earned other operating income of Tk 2,608 million and other non-operating income of Tk 123 million in the fiscal year 2020-21. In the same year, it earned Tk 2,511 million from interest on deposits in the bank. Titas earned a total income of Tk 10,371 million from other sectors in the financial year 2020-21.
The BERC Technical Committee's report revealed that all the companies were profitable. Companies with higher non-operating income remain profitable even if they do not collect distribution charges. In other words, the company stays profitable by earning thousands of crores from bank deposits and various fees.
Messenger/Disha
