Six state-owned gas distributors sold more gas to their customers than they purchased from gas producers, a condition called ‘system gain,’ drawing accusations of foul play from experts and observers.
Experts said the gas distribution companies had effectively cheated consumers and profited by several crores of taka.
The matter was raised by the Bangladesh Energy Regulatory Commission (BERC) technical evaluation committee in the course of public hearings held by the commission between February 2 and 5.
“They [gas distribution companies] do not maintain the temperature and pressure while distributing gas to consumers. As a result, consumers get less gas because measurement machines do not take into account the temperature and pressure,” Shamsul Alam, energy adviser to the Consumer Association of Bangladesh, told the Dhaka Tribune yesterday.
“The meters count only the volume of gas in the pipeline but if the temperature and pressure decreases, the amount of gas decreases,” he said told the Dhaka Tribune.
BERC Chairman AR Khan sought an explanation from the companies regarding the issue.
Gas distribution company executives did not dispute the anomaly but said the responsibility for it lay elsewhere.
“There is nothing to do about pressure and temperature because the pipelines are old. Besides, the manipulation is occurring when the gas is extracted at the gas field,” Titas gas acting managing director, Md Nowshad Islam, said.
Experts said the problem would be solved if companies installed pre-paid meters and electronic volume correctors (EVCs), but the utilities firms were indifferent to the issue.
“Normally service oriented organisations like power and gas companies are supposed to have system losses but, surprisingly, these companies were having system gains,” Md Nurul Islam, a retired professor of the Bangladesh University of Engineering and Technology, said.
He advised the distribution companies to install pre-paid gas meters for households and EVCs for all commercial and industrial consumers to reduce hassles and anomalies.
Shamsul Alam recalled that all staff members at the gas distribution companies, except for managing directors, were receiving profit bonuses of Tk1 lakh to Tk4 lakh per year.
He said the gas distribution companies were, in effect, deceiving consumers to achieve the system gain.
According to gas company officials, Karnaphuli Gas Distribution Company Limited purchased 2159 mmcm of gas and sold 2331.18 mmcm during FY2013-2014, a system gain of 7.97%.
During the previous three fiscal years, the company saw system gains of 8.67%, 6.75% and 3.90 %, respectively.
Pashchimanchal Gas Company Limited purchased 1036.57 mmcm of gas and sold 1077.65 mmcm during FY2013-2014. That accounts for a system gain of 3.96%.
It achieved system gains of 2.07%, 1.62% and 0.15 % during FY2012-13, 2011-12 and 2010-11, respectively.
Bakhrabad Gas Distribution Company Limited purchased 3,059.14 mmcm of gas and sold 3,123.53 mmcm during FY2013-2014, representing gains of 2.10%.
Jalalabad Gas Transmission and Distribution System Limited purchased 1,906.50 mmcm of gas and sold 1,908.34 mmcm during FY2012-13, a gain of 0.10%. In FY2013-14, the company posted system losses of 0.510%
The company achieved system gains of 0.89% and 0.02 % during FY2011-12 and 2010-11, respectively.
Titas Gas Transmission and Distribution Company Ltd purchased 13,426.30 mmcm of gas and sold 13,600.27 mmcm during FY2011-2012, posting system gains of 1.32%.
But the company incurred system minor losses of 0.32% and 0.03 % during FY2013-14 and 2012-13, respectively.
Sundarban Gas Company Limited, a new company, achieved sales of 21.29 mmcm gas against the targeted quantity of 21.29 mmcm without suffering any system losses in FY2013-2014.
