It's irrational

Eminent energy experts at a public hearing yesterday said Titas Gas' proposal to increase natural gas price was irrational as the company was plagued by corruption, inefficiency and pilferage.

Irregularities and inefficiency brought about an artificial crisis in the country's energy sector, making import of liquefied natural gas (LNG) inevitable, they said.

Prof Shamsul Alam, advisor to Consumers Association of Bangladesh, blamed irregularities and inefficiency in Titas Gas Transmission and Distribution Company Limited for the crisis in the energy sector. 

“Titas realises monthly revenue for supplying 87 cubic metre gas through domestic connections without actually supplying the total amount,” he said.

Titas Gas has proposed an average hike of Tk 0.5987 for per cubic metre of natural gas, up from the existing rate of Tk 0.2268.      

Bangladesh Energy Regulatory Commission (BERC) organised the public hearing on the price hike proposal at the TCB Bhaban as part of its ongoing four-day public hearing on the energy sector. BERC Chairman Monowar Islam conducted the hearing. 

Prof Shamsul said Titas provides loans to various power companies at a nominal interest rate of 2 percent without getting mandatory prior approval from BERC, although the loan recovery remains uncertain in some cases.

Titas Gas has committed providing Tk 2,344cr loan to eight power projects.

The company has a surplus income and it pays around Tk 250cr as dividend to its shareholders, Shamsul said, adding, “Why should the general people pay for such a liability?”

Mubasshar Hussain of Institute of Architects Bangladesh said gas connections could be obtained promptly if “special arrangements” were made with Titas Gas. But other applications would be left pending for years if such arrangements were not made, he added.

It has become a regular phenomenon in the capital that residents of Gendaria, Mirpur, Adabor, Shyamoli, Mirhajirbagh, Ibrahimpur, Gopibagh, Eskaton, East Razabazar, Mohammadpur, Shewrapara, Ansar Camp and Jhigatola areas suffer from gas crisis due to shortage in supply.

Titas Gas' total demand now stands at 2,000 million cubic feet per day (mmcfd), while its distribution capacity is only 1,650 mmcfd, according to an official estimate.

Mir Moshiur Rahman, managing director of Titas Gas, along with the company's top officials was present at the programme, but the MD did not respond to the complaints.

Prof Badrul Imam of the geology department at Dhaka University said exploration of local gas reserves was the permanent solution to the country's energy shortages. But the authorities were cutting the exploration programme. Out of the 26 maritime gas blocks, surveys are underway on only four, he said.

Titas Gas serves customers in greater Dhaka and Mymensingh regions. Until June last year, it had 27,34,534 domestic, industrial and commercial subscribers and 13,056km pipeline.

The BERC will decide on hiking the natural gas price after reviewing the opinions of experts and the stakeholders.