A four-day public hearing on the proposals for raising the price of gas and its transmission tariff began Monday at the Bangladesh Energy Regulatory Commission (BERC), reports UNB.
On the first day of the hearing, the BERC Technical Evaluation Committee (TEC) rejected a proposal of the Gas Transmission Company Limited (GTCL) to increase the gas transmission tariff by Tk 0.15 per mmcf and instead recommended decreasing the tariff by Tk 0.19 per mmcf.
However, the full body of the BERC, headed by its chairman AR Khan, will make the final decision on the proposal on completion of the hearing.
The GTCL proposed raising its tariff to Tk 0.47 per mmcf from existing Tk 0.32. But the TEC found no justification for raising the gas transmission tariff. Rather, it proposed decreasing it to Tk 0.13 per mmcf considering its huge revenue earnings in the current fiscal year.
The GTCL also proposed raising its transmission tariff to Tk 0.73 for 2015-16 and Tk 0.75 per mmcf for 2016-17 fiscal years. But the BERC body did not take the proposal into consideration as the BERC does not allow any advance year proposals.
As per evaluation of the TEC, the GTCL will make a total of Tk 7.17 billion (717.680 crore) in current operating revenue in fiscal 2014-15 of which its recommended revenue requirement will be Tk 3.68 billion. "This means, the GTCL's current operating revenue is Tk 3.49 billion higher," said the TEC of the watchdog body.
Considering the fact, the TEC said the GTCL's gas transmission rate should be Tk 0.20 per mmcf. Of this, Tk 0.13 will come from gas transmission charge and Tk 0.07 from condensate transmission charge which is another vital business of the company.
The TEC also found that after payment of tax, the GTCL's made a profit of Tk 3.18 billion in the fiscal year 2010-11, Tk 4.07 billion in 2011-12, Tk 4.06 billion in 2012-13 and Tk 4.25 billion in 2013-14.
During the hearing, BERC chairman AR Khan directed the GTCL not to spend its money in an exaggerated way through holding its AGM in luxury hotel like Ruposhi Bangla. "You can't spend your money for enormous enjoyment in luxury hotel. This is consumers' money," he told the Petrobangla chairman and the top management of GTCL who took part in the hearing.
The GTCL, a subsidiary of the state-owned Petrobangla, along with other six gas distribution companies earlier submitted their respective proposals to the BERC to raise their gas tariff as per directives of the government.
On the first day, different consumer right groups, including Consumers Association of Bangladesh (CAB), left-leaning political parties like Communist Party of Bangladesh (CPB), trade bodies like Dhaka Chamber, Metropolitan Chamber and BGMEA also took part in the hearing.
Placing the proposal, GTCL officials admitted that its employees and officials are getting about Tk 0.4 million as bonus per year from the company's profit.
Opposing the GTCL's tariff hike proposal, CAB Advisor Prof Shamsul Alam raised 17 questions regarding its justification. He alleged that there is no transparency in the earnings and expenditures of the GTCL.
He also observed the GTCL and Petrobangla deliberately ignored and violated the directives of the BERC regarding their project implementation.
Echoing the Shamsul Alam, Buet teacher Prof Nurul Islam said there should be transparency in the monetary operation of GTCL and other Petrobangla companies.
He, however, supported the gas price hike proposal. But all other participants from consumers and other bodies vigorously opposed the gas transmission and gas price hike proposals.
CPB leader Ruhin Hossain Prince said if the gas price is raised, it will have multiple impacts on the common people pushing other commodity prices up.
The BERC will today hold hearing on the proposals of the Titas Gas Transmission and Distribution Company and the Pashchimanchal Gas Distribution Company.
BERC body for gas transmission tariff cut instead of hike
FE Team | Published: February 03, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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