Public hearing on proposed hike in gas tariffs today
Wednesday, 24 September 2008
FE Report
The much-expected public hearing on the proposed natural gas tariff hike for all types of consumers will be held today (Wednesday) in the Bangladesh Energy Regulatory Commission (BERC) office.
A good number of stakeholders including trade bodies, gas distribution companies, consumers' associations, non-government organisations and law consultancy firms are set to take part in the hearing on the proposed gas tariff hike by the state-owned Petrobangla.
The Petrobangla in June last placed a proposal for enhancing the natural gas price by 53 per cent on an average from Tk 92.84 per MCF (1,000 cubic feet) to Tk 142.75 per unit to offset its losses.
The state-owned parent gas company incurs losses as it purchases gas at higher prices from the international oil companies (IOCs) and sells it at lower rates, it argued.
In its tariff hike proposal the Petrobangla pleaded for gas price hike to Tk 93.73 per MCF from existing Tk 73.91 per MCF for power plants owned by the Bangladesh Power Development Board (BPDB), independent power producers (IPP) and small power plants (SPPs).
It proposed the hike to Tk 93.73 per MCF from Tk 63.41 per MCF for fertiliser factories and Tk 182.25 per MCF from existing Tk 105.59 for captive power plants.
The Petrobangla also proposed the gas tariff at Tk 182.25 per MCF for industries from existing Tk 148.13 per MCF, Tk 182.25 for tea estates from present Tk 148.13 per MCF and Tk 291.59 per MCF for commercial usage from existing Tk 233.12 per MCF.
For domestic users the gas price has been proposed at Tk 550 for single burner from the existing rate of Tk 350 and Tk 600 for double burner from existing Tk 400.
This is for the first time in Bangladesh history that a separate entity other than the ministry is deciding on hike in gas tariffs.
From now on the BERC would fix the tariff structures of the energy utilities, which were earlier decided by the ministry, an official of the energy ministry said.
The much-expected public hearing on the proposed natural gas tariff hike for all types of consumers will be held today (Wednesday) in the Bangladesh Energy Regulatory Commission (BERC) office.
A good number of stakeholders including trade bodies, gas distribution companies, consumers' associations, non-government organisations and law consultancy firms are set to take part in the hearing on the proposed gas tariff hike by the state-owned Petrobangla.
The Petrobangla in June last placed a proposal for enhancing the natural gas price by 53 per cent on an average from Tk 92.84 per MCF (1,000 cubic feet) to Tk 142.75 per unit to offset its losses.
The state-owned parent gas company incurs losses as it purchases gas at higher prices from the international oil companies (IOCs) and sells it at lower rates, it argued.
In its tariff hike proposal the Petrobangla pleaded for gas price hike to Tk 93.73 per MCF from existing Tk 73.91 per MCF for power plants owned by the Bangladesh Power Development Board (BPDB), independent power producers (IPP) and small power plants (SPPs).
It proposed the hike to Tk 93.73 per MCF from Tk 63.41 per MCF for fertiliser factories and Tk 182.25 per MCF from existing Tk 105.59 for captive power plants.
The Petrobangla also proposed the gas tariff at Tk 182.25 per MCF for industries from existing Tk 148.13 per MCF, Tk 182.25 for tea estates from present Tk 148.13 per MCF and Tk 291.59 per MCF for commercial usage from existing Tk 233.12 per MCF.
For domestic users the gas price has been proposed at Tk 550 for single burner from the existing rate of Tk 350 and Tk 600 for double burner from existing Tk 400.
This is for the first time in Bangladesh history that a separate entity other than the ministry is deciding on hike in gas tariffs.
From now on the BERC would fix the tariff structures of the energy utilities, which were earlier decided by the ministry, an official of the energy ministry said.