DHAKA: The strong deliberation and questions of energy affairs advisor of CAB Shamsul Alam made both Titas and Bangladesh Energy Regulatory Commission (BERC) embarrassed and Petrobangla scared. He got the confession taking to them at the last ditch. However, his deliberation was such attacking that many lawyers could learn from him.
This comment was made by the BERC chairman AR Khan on Tuesday in the mass hearing held at TCB auditorium in the city. Though the Titas and Petrobangla high officials were sitting mum the consumers rather cheered Shamsul Alam with appreciation.
Titas director (Finance) informed the audience that the government has directed to increase the tariff of one thousand cubic meter gas at Taka 25. For the reason, the proposal of increasing the price of gas was placed.
Questioning the instruction of the government, Shamsul Alam said that the energy and mineral resources division issued the directive to Petrobangla to determine the consumer price of gas.
Whether Titas has received the letter, he asked. Titas in reply said that they did not. Neither as holding company Petrobangla did receive any letter. He disclosed that it was a verbal instruction but did not get any answer regarding the name(s) of the instructor.
At that stage, Alam wanted to know that if any guard or peon had given the instruction. Why the authorities concerned were refusing to disclose the name(s) of the instructor who gave the order to enhance the rate.
However, the CAB advisor then opined that no body can give any proposal on the basis of a verbal instruction. This proposal has no basis, it is a ghostly order. It has no justification.
In reply, Titas agreed that there were some anomalies in the proposal. Alam remarked that there were several records of such ‘divine sermon’. This is such a matter.
Alam further said that in 2003 the government had given a formula of enhancing gas charge. The formula mentioned that purchase of gas/production cost+ transmission and distribution + subsidiary tax+ value added tax = rate of gas at consumer level. This rate format is still in force.
According to the above format, there is no such proposal of the government to enhance the gas price. Then on what justification restructuring the price of gas has been proposed. In reply, Titas managing director further accepted that there are some anomalies in the proposal.
In the placed proposal, Titas has mentioned management cost and at what price it is being purchased. There is no mentioning of profit. Titas failed to give any satisfactory reply. Delwar Hossain, member of the commission for that reason said it was imperative to give the detailed accounts.
Titas, in reply to a question of Professor Dr Nurul Islam, informed the audience that currently there are only 4 thousand pre-paid meters. More 2 lakh meters will be set up by 2022. Another project will be implemented later. It will take more four years.
Expressing his surprise BERC chairman said that after next ten years the gas reserve will be exhausted. Then what benefit will come in setting meters in 2026. There will be no gas at that time.
BERC chairman further asked the authorities concerned that why they have made the meter monopoly business. ‘You allow free marketing of meters. Why take others’ burden on your shoulders,’ he asked again.
Criticizing the proposal of Titas, Dr Nurul Islam said that Titas has raised the proposal in such a way so that people cannot understand it and they have done it knowingly.
However, the Gas Transmission Company Limited (GTCL) has proposed the price format as such - (residential) one burner at Taka 850 from present Taka 400 and for two burners Taka one thousand instead of existing Taka 450.
In reply to a question of the CAB advisor Shamsul Alam, the GTCL director said that they have proposed to enhance the wheeling charge of per cubic meter from 32 paisa to 47 paisa.
But the BERC said that in 2013-14 fiscal GTCL has made the profit of Taka 425 crore with the existing rate.
For the management of the company each cubic meter wheeling charge of the gas will cost 13 paisa which is 19 paisa less as the technical evaluation committee assessed.
BERC chairman AR Khan, member Dr Selim Mahmood, Engineer Delwar Hossain, Maksudul Haque and Rahman Murshed were present, among others, at the mass hearing.
On the matter of increasing the wheeling charge of gas this kind of mass hearing was held for the first time. So long this charge was increased by executive orders.
BDST: 2100 HRS, FEB 03, 2015
