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BERC asks gas cos to install EVC meters for bulk users

It aims to cut pilferage


M Azizur Rahman | November 20, 2018 00:00:00


The country's energy regulator has asked all gas distribution companies to install EVC (electronic volume corrector) meters for large gas clients aiming to reduce pilferage and misuse.

Industries, captive power plants, CNG (compressed natural gas) filling stations, commercial and metered households are among the large consumers instructed within the next one year.

The Bangladesh Energy Regulatory Commission (BERC) has also asked the state distributors to introduce smart or remote meters for such consumers immediately.

It also ordered the state agencies to install pre-paid meters for all household consumers in phases.

The commission orders came in its recently-announced elaborate order in response to tariff hike proposals by the state-run gas distribution companies to ensure efficient use of the blended natural gas after the start of consuming expensive LNG (liquefied natural gas) from August 18, 2018.

The commission on October 16 had announced keeping the natural gas tariff unchanged through a press conference, said a senior BERC official.

The commission ordered the gas distribution companies to sign gas sales agreements with all of its clients.

It ordered state-run Petrobangla to supply natural gas to dual-fuel power plants on a preferential basis and increase gas supplies to gas-fired power plants.

Energy-efficient power plants must have to be given preference over inefficient ones in case of natural gas supply, according to the commission order.

Gas distribution companies including Titas Gas Transmission and Distribution Company Ltd (TGTDCL), Bakhrabad Gas Distribution Company Ltd (BGDCL), Jalalabad Gas Transmission and Distribution Company Ltd (JGTDCL), Karnaphuli Gas Distribution Company Ltd (KGDCL) and Sundarban Gas Company Ltd (SGCL) in their unified proposals sought to hike average natural gas tariff to Tk 12.95 per cubic metre from the existing Tk 7.39 per cubic metre, citing 'inflated' costs after LNG imports.

Raising tariff was not necessary considering the current volume of LNG imports, BERC top officials justified then.

Besides, Petrobangla and its subsidiary gas companies had sought a hike in natural gas tariff calculating import of LNG of 1,000 million cubic feet per day (mmcfd), he added.

But re-gasified LNG supply has not reached over 350 mmcfd level yet, said the BERC official.

The waiver of supplementary duty (SD), customs duty (CD) at consumers' end, lowering of advance income tax (AIT) by the National Board of Revenue (NBR) over blended natural gas also helped the agencies to keep the price 'unchanged,' said the official.

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