The Energy and Mineral Resources Division has finally approved Petrobangla's proposed metering system, transitioning from the longstanding pro-rata method to billing based on actual meter readings.
In a letter signed by Deputy Secretary Mohammad Sheikh Shahidul Islam, retrospective approval from 1 January 2023 was granted.
Previously, while Gas Transmission Company Limited (GTCL) measured gas, no system was in place to measure it at the point of supply.
The new directive mandates the introduction of metering at all levels, with GTCL now required to deliver gas to distribution companies based on metered readings.
The letter also directed effective measures to combat illegal connections and gas theft, highlighting the need to identify system losses resulting from administrative weaknesses and take action against the responsible officials.
Moreover, it emphasised recognising and rewarding those contributing positively to reducing system loss.
Four key directives were issued to alleviate GTCL's financial losses under the new metering system.
These include addressing the billing for gas used as fuel at Muchai Compressor Station until a decision by the Bangladesh Energy Regulatory Commission (BERC) is reached, and re-determining condensate transmission charges.
GTCL is also advised to transfer operational responsibilities of high-pressure pipelines to GTCL itself and seek BERC's approval for technical system loss resulting from off-transmission metering.
GTCL, having previously shifted system losses onto other companies, has accumulated substantial profits, even providing profit bonuses ranging from 200,000 to 600,000 Taka annually.
The introduction of metering at the supply level led to tensions with Petrobangla's former chairman, culminating in written complaints and threats of protest.
Petrobangla’s proposal highlighted that, despite GTCL supplying gas to distribution companies via off-transmission points, direct gas metering at many points was absent, making it difficult to determine the actual quantity of gas delivered or the system loss.
Currently, metering is carried out at 20 points for gas intake and 64 off-transmission points for supply to distribution companies.
Since the metering system's implementation, GTCL's system loss stood at 2.95% in January, 2.99% in February, 3.10% in March, and 2.41% in April 2023. In contrast, system losses for Titas Gas Transmission and Distribution Company, Bakhrabad Gas Distribution Company, Jalalabad Gas Transmission and Distribution System Limited, and Karnaphuli Gas Distribution Company were 10.78%, 6.38%, 1.34%, and 2.05%, respectively.
Petrobangla's letter noted a total loss of 161 million cubic meters of gas among six distribution companies, urging directives to reduce these losses.
The Bangladesh Energy Regulatory Commission's 2022 order stipulates that gas system losses must not exceed 2%, a standard upheld globally, underscoring the necessity of reducing losses and curbing gas theft.
