Gas transmission charges should not be increased, the Bangladesh Energy Regulatory Commission (BERC) technical evaluation committee has recommended, in light of the profitability for several years of the Gas Transmission Company Ltd (GTCL).
GTCL proposed fixing the transmission charge at Tk0.47, an increase of Tk0.15, per cubic meter of gas transmission. The state-run transmission company currently receives Tk0.32 for per cubic meter from gas distribution companies.
AKM Monowar Hossain Akhand, chief of the evaluation committee and also a director of BERC, said: “Given their current level of profits, GTCL should charge its clients Tk0.13 instead of the Tk0.32 they are currently charging.”
He said GTCL saw profits of approximately Tk425.88cr, Tk406.08cr, Tk407.57cr and Tk318.53cr during FY2013-14, 2012-13, 2011-12 and 2010-11 respectively.
GTCL placed the proposal at a public hearing organised by BERC in the city yesterday. It is the first time hearings have been held on the transmission price of gas.
GTCL Director of Finance Md Sharifur Rahman presented the proposal before the commission.
BERC Chairman AR Khan, members Salim Mahmud, Delwar Hossain and Md Maksudul Haque and other stakeholders attended the public hearing at the commission’s office in the capital.
Shamsul Alam, energy adviser of the Consumer Association of Bangladesh (CAB), said: “GTCL has been seeing year on year profits in recent times. Why should it raise transmission charges?”
AR Khan asked the GTCL finance director: “Have you ever spent your own money for a meal at Sheraton Hotel? Then why are you holding your company’s annual general meeting at the five-star hotel?”
“Who gave you the right to spend your customers’ money like this? Do not waste your customers’ money like this in the future,” he said during the hearing.
In reply to a question from CAB adviser Shamsul Alam, the GTCL finance director said: “Every board member is paid Tk6,000 per sitting of the board. In FY2013-14, every staff member except the managing director was paid Tk4 lakh in profit bonuses.”
The BERC chairman asked for details on the number and agenda of board meetings held each year and said: “We will analyse whether the board meetings were held for nothing or not.”
Hearings on the proposal of Titas Gas Transmission and Distribution Company Ltd and Pashchimanchal Gas Company Limited will be held today.
The hearing on Bakhrabad Gas Distribution Company Limited and Karnaphuli Gas Distribution Company Limited proposals will be held tomorrow.
Hearings on the proposals of Jalalabad Gas Transmission and Distribution System Limited and Sundarban Gas Company Limited will be held on February 5.