The Bangladesh Energy Regulatory Commission (BERC) on Wednesday conducted the public hearing on the proposed gas tariff hike amid protests by the stakeholders, including the Consumers Association of Bangladesh (CAB) that boycotted the event.
As the BERC continued the meeting at BIAM Auditorium despite the protests, the CAB members and other stakeholders demanded immediate halt of the hearing on the gas price proposals for new industries and extended units of existing ones.
The CAB threatened a mass movement unless the authorities stop the tariff hike move.
They demanded of the BERC to unearth how much money has been looted from the energy sector through illegal and illogical means over the past 15 years from 2010 to 2024.
The commission arranged the public hearing on the proposals by state-run Petrobangla and its subsidiaries - gas marketing and distribution companies.
Representatives from different trade bodies and organisations also took part in public hearings and protested the gas tariff hike proposals.
This is for the first time the CAB boycotted a public hearing and protested the gas tariff hike move. It also organised a human chain in front of the BIAM Auditorium, protesting the move.
If the proposed tariff hike by up to 152.40 per cent is approved, the government would be able to fetch around Tk 34 billion annually.
The public hearing on the tariff hike is illegal and contradictory to the spirit of July-August uprising, CAB Energy Adviser Prof. M. Shamsul Alam said before the public hearing.
He blamed the BERC for arranging the event instead of its suspension as demanded by the CAB and suggested the commission to advise the government to check illegal and illogical spending.
The commission will have to reveal how much tariff and government subsidy it will be able to cut down through checking illegal and illogical spending, he added.
Mr Alam also demanded trial of "energy culprits" through formation of a tribunal by the BERC with retired judges of the Supreme Court.
He warned the commission of facing tough movement if the move is not cancelled within the next three working days. "Now we are only placing our demand, but after Monday rigorous movement would be launched," said the CAB adviser.
President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem urged the government to check gas pilferage instead of hiking tariffs.
According to Titas Gas Transmission and Distribution Company Ltd (TGTDCL), currently around 13 per cent systems loss is prevailing in its franchise areas, which in other words is theft.
If the gas-supply system's loss could be reduced to 5.0 per cent, some Tk 80 billion could be saved, he said.
Besides, there is value added tax (VAT) on the import of liquefied natural gas (LNG).
If the National Board of Revenue (NBR) withdraws the VAT on LNG imports, it would save around Tk 35 billion in its coffer, Mr Hatem said, refuting the tariff-hike proposals.
Bangladesh's gas-guzzling export-oriented sectors might face slump in export earnings due to uneven competition if gas tariff is hiked for new industries, he said.
No new industries would be established on apprehension of facing uneven competition with the existing ones, and the economy would be affected, he warned.
Asif Ashraf of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said that fetching only around Tk 34 billion with the gas tariff hike would not be a good example.
He urged the government to extend all out support to boost exports, saying if the exporters get US$ 1.0 support, they can fetch foreign currency worth $ 8.50.
Communist Party of Bangladesh (CPB) leader Ruhin Hossain Prince demanded cancellation of the public hearing before the ensuing Ramadan.
As per the tariff hike proposals, new industries and extended units of existing industries will have to pay Tk 75.72 per cubic metre of LNG, or up to 152.40 per cent higher rates from existing ones, currently at around Tk 30 per cm for all industries, big, medium, small and cottage alike.
Owners of all new industries and captive power plants must pay a natural gas tariff at Tk 75.72 per cm for getting new piped gas connections, according to the proposal.
For the new captive power plants, the new tariff will be 141.96 per cent higher than the existing tariff of Tk 31.50 per cm.
New industries and captive plants, which already attained commitments or demand notes from companies for raising gas loads, must pay 50 per cent, or half of the new gas commitments, at current rates.
On the other hand, the remaining half would be paid in accordance with the proposed rate at Tk 75.72 per cm of LNG, according to the proposals.
Besides, the owners of existing industries and plants must pay a tariff at Tk 75.72 per cm for utilising additional gas above their existing approved loads.
To calculate import prices for fixing tariff, state-run gas marketing and distribution companies will calculate three-month average prices of overall LNG import costs from long-term LNG suppliers and spot LNG suppliers.
Azizjst@yahoo.com