UNB, Dhaka :
On the third day of the public hearing on gas price hike proposals, the Bangladesh Energy Regulatory Commission (BERC) heard submissions and counter submissions on the proposals of two state-owned gas distribution entities-Karnaphuli Gas Distribution Company Limited and Bakhrabad Gas Distribution Company
Limited.
During the hearing, Technical Evaluation Committee (TEC) of the BERC said there is no need for raising the gas price of Karnaphuli Gas Distribution Company Limited as it has no revenue shortfall.
The Karnaphuli Gas Company, now having a customer base of 369,703 with operation in Chittagong and its adjoining areas, will make surplus revenue of Tk 377.290 crore in the current fiscal year 2014-15.
The Watchdog’s TEC, however, said Bakhrabad Gas Distribution Company’ s gas price could be hiked by 2.49 percent considering its possible revenue shortfall of Tk 38.127 crore in the current fiscal.
Bakhrabad Gas Company has been operating in Comilla, Chandpur, Feni, Noakhali, Laxmipur and Brahmanbaria districts with 318,437 consumers.
Though the TEC made these recommendations, the final decision on the issue will come from the full body of the commission headed by its chairman AR Khan after further evaluation of all stakeholders’ views.
Both the Karnaphuli Gas and Bakhrabad Gas companies sought an average 40 percent hike over their existing price at different consumer levels. They placed the proposals abiding by a verbal order of their principal body Petrobangla to fix the gas asset value at Tk 25 per unit (1000 cubic metre).
As per the proposals, it will push up the single burner gas oven’s monthly bill to Tk 850 from existing Tk 400 while double burners’ bill to Tk 1000 from exiting Tk 450 at the residential consumer level.
BERC chairman AR Khan directed the gas distribution companies to ensure smooth bill payments through mobile phone service.
Like previous days, different consumer right groups, social organisations, trade bodies and left leaning political parties vigorously opposed the price hike proposals saying the proposals were not placed in due legal process.
They also said prior to taking into considerations of any gas hike proposals, the wellhead gas price should be fixed first.
Taking part in the hearing, Consumers Association of Bangladesh Prof M Shamsul Alam said the consumers are already paying excessive bills under the previous BERC order to pay for creating Gas Development Fund (GDF).
“But the Petrobangla is not appropriately using the GDF funds and the money is going down the drain,” he added.
Prof Nurul Islam said there will be always anomalies in fixing gas price until a wellhead gas price is fixed.
Communist Party of Bangladesh (CPB) leader Ruhin Hossain Prince said the BERC should not hold public hearing on the basis of the proposals which do not have any legal basis.
Bangladesh CNG Filling Station Owners Association leader Mamun Abdullah said if the CNG price is enhanced it will have bad impacts on the environment as CNG was not introduced only considering the economic aspects. Rather, environmental issues were the main reason behind introduction of CNG in the motor vehicle.
Gano Sanghati Andolon convenor Zonayed Saki said any hike in gas price will push up all commodity prices.
The BERC will hear the submissions of the Jalalabad Gas and Sundarban gas distribution companies’ gas price hike proposals on Thursday
On the third day of the public hearing on gas price hike proposals, the Bangladesh Energy Regulatory Commission (BERC) heard submissions and counter submissions on the proposals of two state-owned gas distribution entities-Karnaphuli Gas Distribution Company Limited and Bakhrabad Gas Distribution Company
Limited.
During the hearing, Technical Evaluation Committee (TEC) of the BERC said there is no need for raising the gas price of Karnaphuli Gas Distribution Company Limited as it has no revenue shortfall.
The Karnaphuli Gas Company, now having a customer base of 369,703 with operation in Chittagong and its adjoining areas, will make surplus revenue of Tk 377.290 crore in the current fiscal year 2014-15.
The Watchdog’s TEC, however, said Bakhrabad Gas Distribution Company’ s gas price could be hiked by 2.49 percent considering its possible revenue shortfall of Tk 38.127 crore in the current fiscal.
Bakhrabad Gas Company has been operating in Comilla, Chandpur, Feni, Noakhali, Laxmipur and Brahmanbaria districts with 318,437 consumers.
Though the TEC made these recommendations, the final decision on the issue will come from the full body of the commission headed by its chairman AR Khan after further evaluation of all stakeholders’ views.
Both the Karnaphuli Gas and Bakhrabad Gas companies sought an average 40 percent hike over their existing price at different consumer levels. They placed the proposals abiding by a verbal order of their principal body Petrobangla to fix the gas asset value at Tk 25 per unit (1000 cubic metre).
As per the proposals, it will push up the single burner gas oven’s monthly bill to Tk 850 from existing Tk 400 while double burners’ bill to Tk 1000 from exiting Tk 450 at the residential consumer level.
BERC chairman AR Khan directed the gas distribution companies to ensure smooth bill payments through mobile phone service.
Like previous days, different consumer right groups, social organisations, trade bodies and left leaning political parties vigorously opposed the price hike proposals saying the proposals were not placed in due legal process.
They also said prior to taking into considerations of any gas hike proposals, the wellhead gas price should be fixed first.
Taking part in the hearing, Consumers Association of Bangladesh Prof M Shamsul Alam said the consumers are already paying excessive bills under the previous BERC order to pay for creating Gas Development Fund (GDF).
“But the Petrobangla is not appropriately using the GDF funds and the money is going down the drain,” he added.
Prof Nurul Islam said there will be always anomalies in fixing gas price until a wellhead gas price is fixed.
Communist Party of Bangladesh (CPB) leader Ruhin Hossain Prince said the BERC should not hold public hearing on the basis of the proposals which do not have any legal basis.
Bangladesh CNG Filling Station Owners Association leader Mamun Abdullah said if the CNG price is enhanced it will have bad impacts on the environment as CNG was not introduced only considering the economic aspects. Rather, environmental issues were the main reason behind introduction of CNG in the motor vehicle.
Gano Sanghati Andolon convenor Zonayed Saki said any hike in gas price will push up all commodity prices.
The BERC will hear the submissions of the Jalalabad Gas and Sundarban gas distribution companies’ gas price hike proposals on Thursday
