Gas, electricity and water crisis
Sunday, 8 May 2011
Syed Jamaluddin
The gas, electricity and water supply crisis is becoming unbearable. According to power division sources, even if the power stations contracted without tender come on stream on time, there will be a shortage of 2,000mw of power during this summer. On the other hand, there is no good news for meeting the gas crisis in two years' time. But Petrobangla is saying that new wells are being drilled. Many schemes have been taken up. Gas production will increase if these projects are implemented. It will take about two years for these projects to be executed. The inhabitants of the city are also worried about the water supply. Efforts of the Water and Sewerage Authority (WASA) are not adequate to meet the shortage of water. WASA is able to supply only 1.6 billion litre of water against the requirement of 2.2 billion litre, allowing for 29 per cent system loss. Thus, the gas, electricity and water crisis is not likely to improve in the near future. Apartment owners have been informed by the government that they will not be given new gas connections. This has created difficulties for the real estate owners. The government is buying electricity at high cost. This burden is being shifted to the users. Another price hike of electricity at retail level is likely to be announced soon. The maximum production of electricity during the summer of last year was 4,700mw but it is not exceeding 4,000mw currently due to gas shortage and closing of power stations for maintenance. There is uncertainty about the new quick rental power stations coming on stream on time. According to the contract, these power plants are to become operational by this month. But according to latest information, only 50 to 60 per cent work of these ventures have been completed. The chairman of Power Development Board (PDB) has informed that those companies failing to come on stream will be fined. According to him, 1,000mw of electricity is expected to be added to the national grid by next June. PDB is buying electricity at a high cost and selling it at a cheaper rate. This is increasing the burden of loss of the power board. The rental power plants have added to this burden. The power board is spending Tk14.29 per unit to buy power from diesel-based power plants but they are selling at Tk 2.80.The power board estimates that at the end of this fiscal, the loss will be around Tk 35 billion. According to a senior official of PDB, losses of the power board would go on increasing for buying electricity at a high price from the rental power plants. If the existing price of buying electricity from the private sector remains unchanged, PDB's loss will amount to Tk 201.75 billion in the next three years. During the current year, the loss will be Tk 35.9 billion and next year it will be Tk 68.1 billion. In 2012-13, the amount of loss is estimated at Tk 97.7 billion. In order to protect PDB from bankruptcy, the price of electricity is being increased at both retail and wholesale level. According to the experts, energy security will be threatened for allowing the private sector to produce electricity. PDB's own production cost will be lower, as a result power can be given to the people at a lower cost. Because of privatisation, energy security will be dependent on private companies, which will be charging higher prices. Because of this, the government will have to approve price hike of electricity. This will cause suffering to the people. According to Petrobangla, the total demand for gas is 2.5 billion cft and current production is 2.0 billion cft. Per day shortage is 500 million cft. This shortage will increase to 1.0 billion cft by the end of this year. In fact, this shortage would have been much more as giving new gas connections to industries was stopped for two years. Providing new gas connections for households was stopped one year ago. According to Petrobangla, new wells are being drilled which will take about two years to complete. In this context, a decision has been made to import liquefied petroleum gas (LPG). Entrepreneurs have informed that investments to the extent of Tk100 billion to Tk120 billion are held up due to the shortage of gas supply. The garment sector is most affected. These investments have already been made and cannot be made operational for want of gas. Factories at Gazipur, Savar, Konabari, Narayanganj and Chittagong cannot produce more than 20 to 30 per cent of their capacity on account of gas shortage. Gas supply is not available in these areas for up to 17 hours every day. The government has taken a decision not to give new gas connections to residential consumers. As a result, consumers will have to buy LPG at a much higher cost. Side by side, the price of gas supplied to households by pipeline will also be increased. The real estate companies are very unhappy about government decision. If gas connection is stopped permanently, the real estate business will be adversely affected. Real estate businessmen are saying that they cannot handover flats to owners for want of gas and electricity. Permanent stoppage of utility connections will result in further difficulties for them. The government will have to give attention to increase gas production. Depression has set in the real estate sector because of the stoppage of gas and electricity connection. The general public is also facing a difficult situation. People have borrowed money from banks to buy apartments but they cannot occupy them for the lack of gas and electricity connection. So, they are not being able to repay the bank loans. Bad loans in banks are also increasing. In Chittagong, all gas-based power stations are closed. Electricity production is lower by700mw, resulting in increased load shedding. There is also no good news for the city dwellers so far as water supply is concerned. Apart from the supply shortage, WASA water is dirty and has bad smell. In many places, water and sewerage pipes got mixed up. The daily shortage of water supply is estimated at 600 to 700 million litre. Load shedding is also reponsible for water shortage. The phase-2 of Saidabad project is under implementation. Although it is scheduled to be completed in 2012, it may not become operational on time. There is no progress on the project for supplying water from outside Dhaka. The problems discussed above are lingering and causing suffering to the users of gas, electricity and water supply. These are priority areas. The government should redouble their efforts to solve these problems within a fixed time frame. The writer is an economist and columnist. He can be reached at e-mail: syedjamaluddin22@yahoo.com
The gas, electricity and water supply crisis is becoming unbearable. According to power division sources, even if the power stations contracted without tender come on stream on time, there will be a shortage of 2,000mw of power during this summer. On the other hand, there is no good news for meeting the gas crisis in two years' time. But Petrobangla is saying that new wells are being drilled. Many schemes have been taken up. Gas production will increase if these projects are implemented. It will take about two years for these projects to be executed. The inhabitants of the city are also worried about the water supply. Efforts of the Water and Sewerage Authority (WASA) are not adequate to meet the shortage of water. WASA is able to supply only 1.6 billion litre of water against the requirement of 2.2 billion litre, allowing for 29 per cent system loss. Thus, the gas, electricity and water crisis is not likely to improve in the near future. Apartment owners have been informed by the government that they will not be given new gas connections. This has created difficulties for the real estate owners. The government is buying electricity at high cost. This burden is being shifted to the users. Another price hike of electricity at retail level is likely to be announced soon. The maximum production of electricity during the summer of last year was 4,700mw but it is not exceeding 4,000mw currently due to gas shortage and closing of power stations for maintenance. There is uncertainty about the new quick rental power stations coming on stream on time. According to the contract, these power plants are to become operational by this month. But according to latest information, only 50 to 60 per cent work of these ventures have been completed. The chairman of Power Development Board (PDB) has informed that those companies failing to come on stream will be fined. According to him, 1,000mw of electricity is expected to be added to the national grid by next June. PDB is buying electricity at a high cost and selling it at a cheaper rate. This is increasing the burden of loss of the power board. The rental power plants have added to this burden. The power board is spending Tk14.29 per unit to buy power from diesel-based power plants but they are selling at Tk 2.80.The power board estimates that at the end of this fiscal, the loss will be around Tk 35 billion. According to a senior official of PDB, losses of the power board would go on increasing for buying electricity at a high price from the rental power plants. If the existing price of buying electricity from the private sector remains unchanged, PDB's loss will amount to Tk 201.75 billion in the next three years. During the current year, the loss will be Tk 35.9 billion and next year it will be Tk 68.1 billion. In 2012-13, the amount of loss is estimated at Tk 97.7 billion. In order to protect PDB from bankruptcy, the price of electricity is being increased at both retail and wholesale level. According to the experts, energy security will be threatened for allowing the private sector to produce electricity. PDB's own production cost will be lower, as a result power can be given to the people at a lower cost. Because of privatisation, energy security will be dependent on private companies, which will be charging higher prices. Because of this, the government will have to approve price hike of electricity. This will cause suffering to the people. According to Petrobangla, the total demand for gas is 2.5 billion cft and current production is 2.0 billion cft. Per day shortage is 500 million cft. This shortage will increase to 1.0 billion cft by the end of this year. In fact, this shortage would have been much more as giving new gas connections to industries was stopped for two years. Providing new gas connections for households was stopped one year ago. According to Petrobangla, new wells are being drilled which will take about two years to complete. In this context, a decision has been made to import liquefied petroleum gas (LPG). Entrepreneurs have informed that investments to the extent of Tk100 billion to Tk120 billion are held up due to the shortage of gas supply. The garment sector is most affected. These investments have already been made and cannot be made operational for want of gas. Factories at Gazipur, Savar, Konabari, Narayanganj and Chittagong cannot produce more than 20 to 30 per cent of their capacity on account of gas shortage. Gas supply is not available in these areas for up to 17 hours every day. The government has taken a decision not to give new gas connections to residential consumers. As a result, consumers will have to buy LPG at a much higher cost. Side by side, the price of gas supplied to households by pipeline will also be increased. The real estate companies are very unhappy about government decision. If gas connection is stopped permanently, the real estate business will be adversely affected. Real estate businessmen are saying that they cannot handover flats to owners for want of gas and electricity. Permanent stoppage of utility connections will result in further difficulties for them. The government will have to give attention to increase gas production. Depression has set in the real estate sector because of the stoppage of gas and electricity connection. The general public is also facing a difficult situation. People have borrowed money from banks to buy apartments but they cannot occupy them for the lack of gas and electricity connection. So, they are not being able to repay the bank loans. Bad loans in banks are also increasing. In Chittagong, all gas-based power stations are closed. Electricity production is lower by700mw, resulting in increased load shedding. There is also no good news for the city dwellers so far as water supply is concerned. Apart from the supply shortage, WASA water is dirty and has bad smell. In many places, water and sewerage pipes got mixed up. The daily shortage of water supply is estimated at 600 to 700 million litre. Load shedding is also reponsible for water shortage. The phase-2 of Saidabad project is under implementation. Although it is scheduled to be completed in 2012, it may not become operational on time. There is no progress on the project for supplying water from outside Dhaka. The problems discussed above are lingering and causing suffering to the users of gas, electricity and water supply. These are priority areas. The government should redouble their efforts to solve these problems within a fixed time frame. The writer is an economist and columnist. He can be reached at e-mail: syedjamaluddin22@yahoo.com