FE Today Logo
Search date: 11-03-2019 Return to current date: Click here

BERC hearing on gas price hike begins today

Companies propose doubling rate


FE Report | March 11, 2019 12:00:00


A four-day public hearing to justify gas tariff hike proposals for consumers begins today (Monday) amid protest from the consumer rights groups.

The Bangladesh Energy Regulatory Commission (BERC) arranged the hearing at the TCB auditorium in the city, which will kick off with a presentation from state-run Petrobangla in favour of the tariff hike proposal.

The hearing against the proposal of state-run Gas Transmission Company Ltd (GTCL) over hiking transmission charges would also be held on the opening day.

Petrobangla and its subsidiary gas marketing and distribution sought raising natural gas tariff for all types of consumers, including households, by nearly doubling the average tariff to Tk 12.19 per cubic metre from Tk 7.35.

The move has drawn opposition from rights groups.

Energy adviser of the Consumers' Association of Bangladesh (CAB) Prof M Shamsul Alam protested the move, saying it was an 'illegal' attempt to arrange the public hearing by the BERC.

Citing a provision of the existing regulation, he said the BERC has no authority of arranging public hearing within one year of raising tariff.

The BERC in its previous verdict issued on October 16, 2018 had raised transmission charge and margins of different state-run gas marketing and distribution companies but had turned down the proposals for raising gas tariff on consumers.

The proposals of all the state-run gas marketing and distribution companies, namely-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 the Pashchimanchal Gas Company Limited (PGCL) - are almost same.

They sought raising tariff for household single and double burners to Tk 1,000 and Tk 1,200 per month respectively from the existing Tk 750 and Tk 800 per month respectively.

New gas tariff for metered household consumers has been proposed at Tk 13.65 per cubic metre from existing Tk 9.10 per cubic metre.

The feed gas in the compressed natural gas (CNG) for filling stations has been proposed to be raised by 25 per cent to Tk 40 per cubic metre from the existing Tk 32.

All the gas companies sought raising tariff for gas-fired power plants to Tk 7.66 per cubic metre from the existing Tk 3.16, representing a 142 per cent hike.

For fertiliser factories they proposed increasing the tariff by 158 per cent to Tk 7.0 per cubic metre from the existing Tk 2.17.

For gas-fired captive power plants, the proposed tariff is Tk 15.70 per cubic metre from existing Tk 9.62, representing a 63 per cent hike.

For the industrial sector, the natural gas tariff as sought by the distributors is 93 per cent higher at Tk 15 per cubic metre from the existing Tk 7.76.

Gas tariff for commercial consumers has been proposed to be Tk 20 per cubic metre from the existing Tk 17.04, representing a 17 per cent hike.

Azizjst@yahoo.com


Share if you like