Photo : Messenger
Titas Gas Distribution Company has lodged an application with the regulatory body, proposing a hefty 47 percent hike in household gas prices, despite holding Tk 5,825.52 crore in reserves against a paid-up capital of Tk 9,89.22 crore.
Officials from the Bangladesh Energy Regulatory Commission (BERC) confirmed that they are meticulously scrutinizing the application. They foresee a significant potential increase in monthly bills for domestic users if the proposal gets the green light. The state-operated Titas Gas justifies its application by claiming that consumers are utilizing more gas than what has been established by the regulator's pricing.
In its request to the BERC, Titas Gas has specifically sought an increase in the allotted cubic meters for various stove categories. For instance, the proposed revision includes an increase from 55 cubic meters (Tk. 990) to 76.65 cubic meters (Tk. 1379.70) for one stove and from 60 cubic meters (Tk. 1080) to 88.44 cubic meters (Tk. 1591.92) for two stoves. This application was officially submitted to the BERC in May of this year.
Titas Gas reports that out of its 28.57 lakh domestic users, only 11.32 percent, which amounts to 3.32 lakhs, use meters, while a staggering 25.25 lakhs, comprising 88.38 percent of the total users do not use meters.
This alarming scenario has led experts to cast doubt on the integrity of the entire Titas Company, accusing it of being deeply entrenched in corruption. Transparency appears to be a significant concern, with the company exhibiting reluctance in this regard. Moreover, there are criticisms regarding the sluggish pace at which meters are being installed, contributing to sustained system losses.
Professor Shamsul Alam, an Energy Expert, voiced his concerns to the Daily Messenger, stating, "Every single official within Titas Gas seems to be embroiled in corruption. Over the course of ten years, they have managed to install only 4 lakhs meters.”
In its proposal, Titas Gas contends that non-metered domestic consumers not only use gas for household cooking but also for water boiling, attempting to justify the usage patterns of non-metered users.
Workers in industrial areas and sublet tenants often consume more gas compared to an average household due to interim cooking for multiple families or purposes.
Despite attempts to reach out, Engr. Md. Haronur Rashid Mullah, the Managing Director of Titas Gas, and the Company Secretary Mahmudur Rab, have not responded to repeated phone calls.
Meanwhile, the Bangladesh Energy Regulatory Commission (BERC) has directed a thorough examination of the application proposing an increase in gas bills for non-metered residential customers. To oversee this evaluation, a committee has been established, with Engineer Fazle Alam, the Director (Gas), at its helm.
BERC Chairman Nurul Amin announced on December 3 that the proposal regarding the hike in Titas' gas bills would be addressed during the commission's meeting.
Maqbul E-Elahi Chowdhury, a former Member (Gas) of BERC, expressed his opinion, suggesting that the allotted amount should possibly be below 50 cubic meters for gas usage.
Furthermore, in response to a query, Maqbul E-Elahi Chowdhury highlighted that Titas Gas has approximately 3.5 lakh prepaid meters in operation. He noted that, on average, it was observed that less than 45 cubic meters were being utilized with these meters.
The last increase in gas prices by the BERC took place on June 5, 2022. Recent statistics derived from customers using prepaid meters provided insights into usage patterns, indicating that on average, a single stove consumes around 40 cubic meters, while households using two stoves consume a maximum of 50 cubic meters.
Taking these usage figures into consideration, there has been a decision to revise the allotted gas consumption for customers with prepaid meters. Consequently, the consumption for one stove has been adjusted downward from 73.41 cubic meters to 55 cubic meters, and for two stoves, from 77.41 cubic meters to 60 cubic meters.
Additionally, there have been developments regarding the determination of gas transmission and distribution charges.
Initially, there was a plan to increase transmission charges, but sources within the Department of Energy and Mineral Resources have confirmed that the decision to raise these charges has been rescinded in the executive order.
Messenger/Disha
