The charge for gas transmission might increase as the technical committee of Bangladesh Energy Regulatory Commission (BERC) on Sunday accepted the Gas Transmission Company Ltd's (GTCL) proposal that the charge should be increased.
On the first day of an eight-day long public hearing on gas prices, the GTCL proposed fixing the transmission charge at Tk0.3665, an increase of Tk0.21, per cubic metre of gas transmission.
But the BERC technical committee recommended that the price should be increased to Tk0.2956 from its existing price.
The state-run transmission company currently receives Tk0.1565 per cubic metre from gas distribution companies.
However, the full-body of the BERC, headed by its Chairman AR Khan, will make the final decision on the proposal on completion of all the hearings.
The hearing was held at the Trading Corporation of Bangladesh (TCB) auditorium in Dhaka.
On the first day, different consumer right groups including Consumers Association of Bangladesh (CAB), left-leaning political parties like Communist Party of Bangladesh (CPB), trade bodies like Dhaka Chamber, Metropolitan Chamber and BGMEA also took part in the hearing.
Earlier, Shafayatur Rahman, deputy general manager (finance) of the GTCL, said the company made a profit of Tk136.8 crore in 2015-16 fiscal year. But as the wheeling charge was reduced to Tk0.1565, the company might incur Tk39.386 crore loss in the 2016-17 fiscal year.
Terming the possible loss as one of the reasons behind the price hike proposal, GTCL officials also justified their proposal by saying that its cost of operation had shot up due to the government's expansion in gas transmission programmes, most of which were not financially viable.
But those present at the hearing strongly opposed the proposal. They said GTCL should instead lower its tariff, enabling the general people to receive gas at lower prices.
FBCCI President Abdul Matlub Ahmed urged the commission not to increase the gas price, saying an increase would hurt the country's industries.
“The business communities of the country have already been hurt because of incidents like Rana Plaza collapse and Gulshan terrorist attack. Now they are trying to recover. I urge the commission to not increase the price for at least a year,” said the chief of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI).
Matlub also said the rationale that gas price should be increased because of future LNG export was not acceptable.
“We have to understand that if gas price is increased now, then it will affect our export.”
Opposing the GTCL's tariff hike proposal, CAB Advisor Prof Shamsul Alam also raised a set of questions regarding its justification. He alleged that there was no transparency in the earnings and expenditures of the GTCL.
He further observed that the GTCL and Petrobangla deliberately ignored and violated BERC directives regarding their project implementation.
CPB leader Ruhin Hossain Prince said if the gas price was raised, it would have multiple impacts on the common people, pushing other commodity prices up.
The BERC is scheduled to hold hearing on Monday on proposals from the Titas Gas Transmission and Distribution Company.
Thursday, April 25, 2024
