CAB accuses Petrobangla of violating BERC law
Saturday, 10 July 2010
FE Report
Consumers Association of Bangladesh (CAB) Friday accused Petrobangla, the state-owned oil, gas and minerals authority, of violating the country's energy law.
Petrobangla has recently submitted its proposal of increasing gas price by 67 per cent and electricity price by 21 per cent to the ministry ignoring Bangladesh Energy Regulatory Commission (BERC) even though BERC only can make a declaration to increase the price after a public hearing.
So we think Petrobangla has violated BERC law, said the CAB members.
They were speaking at a press conference against the sudden declaration of the government to raise the prices of gas and electricity held at CAB conference hall.
President Quazi Faruque, secretary Advocate Humayun Kabir Bhuiyan of CAB spoke on the occasion while energy specialist and CAB representative to BERC Professor Dr M Shamsul Alam presented the key-note paper.
The paper revealed that Petrobangla had proposed 67 per cent price rise of gas to BERC, which the regulatory commission did not think logical.
The distribution of gas to the consumers costs Petrobangla Tk 109 while selling price is above Tk 111.36, which indicates it makes benefit of Tk 2.36 per 1,000 cft and the total figure of profit was estimated at Tk 1,665.20 million in 2008-9 fiscal year.
The paper also disclosed that Petrobagla is now buying 54 per cent of the distributed gas from international oil companies (IOCs) under production sharing contact (PSC).
Petrobangla submitted a seven-year plan to BERC on April 2009 to increase the public companies' ability to supply more gas than that of IOCs and to look for new gas fields according to a BERC prescription.
But the proposal was unbalanced according to a BERC investigation. In that proposal only Tk 2.7 billion of Tk 356.66 billion, earmarked in the seven-year plan, was fixed for exploring new gas fields as the regulatory commission thinks the exploring sector should get top priority.
Petrobangla has violated the 42 and 43 (Kha) clauses of BERC law by submitting its strategic plan and price rise proposal to the ministry averting the regulatory commission, said Shamsul Alam.
CAB urged Petrobangla for submitting a fresh proposal to BERC and refraining from signing new PSCs to help empower the local companies. It also insisted on the implementation of the strategic plans for exploration of new gas fields locally to make the public sector strong.
Consumers Association of Bangladesh (CAB) Friday accused Petrobangla, the state-owned oil, gas and minerals authority, of violating the country's energy law.
Petrobangla has recently submitted its proposal of increasing gas price by 67 per cent and electricity price by 21 per cent to the ministry ignoring Bangladesh Energy Regulatory Commission (BERC) even though BERC only can make a declaration to increase the price after a public hearing.
So we think Petrobangla has violated BERC law, said the CAB members.
They were speaking at a press conference against the sudden declaration of the government to raise the prices of gas and electricity held at CAB conference hall.
President Quazi Faruque, secretary Advocate Humayun Kabir Bhuiyan of CAB spoke on the occasion while energy specialist and CAB representative to BERC Professor Dr M Shamsul Alam presented the key-note paper.
The paper revealed that Petrobangla had proposed 67 per cent price rise of gas to BERC, which the regulatory commission did not think logical.
The distribution of gas to the consumers costs Petrobangla Tk 109 while selling price is above Tk 111.36, which indicates it makes benefit of Tk 2.36 per 1,000 cft and the total figure of profit was estimated at Tk 1,665.20 million in 2008-9 fiscal year.
The paper also disclosed that Petrobagla is now buying 54 per cent of the distributed gas from international oil companies (IOCs) under production sharing contact (PSC).
Petrobangla submitted a seven-year plan to BERC on April 2009 to increase the public companies' ability to supply more gas than that of IOCs and to look for new gas fields according to a BERC prescription.
But the proposal was unbalanced according to a BERC investigation. In that proposal only Tk 2.7 billion of Tk 356.66 billion, earmarked in the seven-year plan, was fixed for exploring new gas fields as the regulatory commission thinks the exploring sector should get top priority.
Petrobangla has violated the 42 and 43 (Kha) clauses of BERC law by submitting its strategic plan and price rise proposal to the ministry averting the regulatory commission, said Shamsul Alam.
CAB urged Petrobangla for submitting a fresh proposal to BERC and refraining from signing new PSCs to help empower the local companies. It also insisted on the implementation of the strategic plans for exploration of new gas fields locally to make the public sector strong.