Residents pay Tk 975 for gas worth Tk 500
Shila Bithi and Kamrunnesa reside in Zakir Hossain Road area and the Housing Society respectively in the capital’s Mohammadpur. Both of their houses have gas connections from Titas Gas Transmission and Distribution Company Limited with Shila Bithi is spending less than Tk 500 a month and Kamrunnesa is paying Tk 975 a month.
Why does their gas bill vary even both live in the same area? Shila Bithi said she uses a gas-prepaid meter and if she recharges Tk 1,000, she can use it for her four-member family for over two months.
Kamrunnesa, too, has a four-member family and her house does not have a gas-prepaid meter. Though she faces gas crisis sometimes, she pays Tk 975 a month for gas as fixed by the government. Sometimes, she needs to purchase liquefied petroleum gas (LPG) cylinder and that raises her expenses.
Titas Gas, the largest gas distribution company of the country, supplies gas in the capital and its neighbouring area. Titas Gas have more than 2.856 million household customers with 320,000 customers having prepaid meters and the remaining ones paying the monthly bill at a fixed rate.
An estimated gas bill is fixed for a household without a prepaid meter. When Bangladesh Energy Regulatory Commission (BERC) raised the gas price for the last time in 2019, the regulatory body fixed the monthly average usage for a two-burner at 77 cubic meters. Review of documents on Titas’ customers having prepaid meter for last four months shows they use 34 cubic metre of gas worth Tk 428 a month.
Consumers’ rights body Consumers Association of Bangladesh (CAB) said though customers are little unaware but customers do not, on an average, use gas worth over Tk 500 a month but they have to pay double.
Titas managing director Harunur Rashid Mollah told Prothom Alo BERC fixes the gas price not the Titas and the regulatory body can consider the matter. However, customers of prepaid meter use gas with awareness so it is difficult to compare them with others, he said adding they are trying to install prepaid meter for all users.
People concerned said it is necessary to install prepaid gas meter at all household to ensure the conscious use of gas. Titas started installing of prepaid meter in Dhaka in 2005 and the company has provided 11 per cent of the customers with the meter so far. Titas officials allegedly collect additional money from customers without prepaid meter to meet the deficit bill caused by installing illegal gas connections and stealing gas. That is why Titas is not interested to set up prepaid meter at all households.
Additional bill worth Tk 25 billion a year
People concerned said the state of household gas customers is same for all six gas-distribution companies including Titas in the country. Most of the household gas customers use a two-burner. A customer using a one-burner pays Tk 925 a month and they are a few in number. There are less than 400,000 prepaid meters among 4.3 million (43 lakh) customers of six gas-distribution companies and these 3.9 million (39 lakh) customers without prepaid meters pay an additional Tk 2.13 billion (213 crore) a month, totaling more than Tk 25 billion (2,500 crore) a year.
The Titas collected Tk 536.9 million (53.69 crore) from customers using prepaid meter from December 2021 to March this year. Currently, price of a cubic metre gas is Tk 12.60 and a customer uses about 34 cubic meters of gas a month.
In the meantime, process is on to raise gas price on top of collecting additional price with the BERC analysing data and information after holding a public hearing in the proposal for gas price hike. The commission will decide after Eid-ul-Fitr. Discussion is also on over the gas use by a customer having a two-burner.
In 2015, the BERC fixed the monthly average usage for a customer at 88 cubic meters but the estimation was cut gradually in face of objection. This time, Titas proposed to set the monthly average usage of gas at 100 cubic meters from 77 cubic meters for the customers having no prepaid meter. The evaluation committee formed by the BERC, however, recommended it setting at 60 cubic meters.
BERC chairman told Abdul Jalil previously more monthly average usage of gas was fixed and this time it will be lowered. Bill will be fixed after assessing on how much gas a customer uses rationally and use of prepaid meter will also be made mandatory, he added.
Consumers’ rights body CAB demanded that gas bill must be fixed at 40 cubic meters for monthly average usage of gas because a customer on an average uses such amount of gas.
This correspondent talked to 10 customers of prepaid gas meters in Dhaka and found similarity to the CAB’s demand. These consumers said their monthly gas expense is below Tk 500 meaning that they use about 40 cubic meters of gas.
Sadia Semanti from Dhaka’s Basundhara Residential Area told Prothom Alo her gas expense fell largely after setting prepaid meter and she does not need to spend more than Tk 500.
Roknuzzaman from Mirpur also echoed Sadia Semanti saying if he recharges Tk 1,000, he can use gas for two and a half month.
Sloth pace in meter instalment
Instalment of prepaid meter began in Dhaka in 2005 with 1,000 meters being set up in Banani area on trial basis. Several months later, Titas conducted a survey on 848 consumers and the petroleum department of the Bangladesh University of Engineering and Technology (BUET) prepared a report on the survey. The report said consumers’ spending fell 58 per cent in April 2006 from October 2005 after installing prepaid meter. If prepaid meter was installed at household, spending on gas may decrease but there is no pace in setting it up.
Record of the distribution companies shows, 379,665 consumers got prepaid meters as of March this year with Titas installing 319,665 meters and Karnaphuli Gas Company in Chattogram setting up 60,000 meters.
The remaining four companies – Jalalabad, Bakhranad, Pashchimanchal and Sundarbans gas distribution companies are yet to start setting up prepaid meter. Officials claimed they could not start work due to lack of funds as instalment of 100,000 meters needs Tk 2.5-3 billion (250-300 crore).
People concerned, however, said all gas distribution companies make profit and if these companies want they can arrange the fund for meter instalment but they are not interested in it.
Three more years left
Three more years are left as the government set a target to bring all gas users under the coverage of prepaid meter by 2025.
Meanwhile, the BERC sent letter to gas distribution companies for several times, stressing the latter to install prepaid meter for their customer. The parliamentary standing committee on power, energy and mineral resources affairs ministry also express anger on the slow pace in setting up of prepaid meter.
The power, energy and mineral resources affairs ministry instructed to set up at least 2 million (20 lakh) prepaid meters in next two year at its own expanse. Besides, import of meter opens in private sector so that customers themselves can purchase it and install it. However, the process is yet to start.
CAB senior vice president M Shamsul Alam told Prothom Alo an opportunity of corruption and stealing gas exists because bill is set on an additional monthly average usage of gas. The CAB has complained to the BERC against Titas for stealing gas, he added.
*This report appeared in the print and online edition of Prothom Alo and has been rewritten in English by Hasanul Banna