prepaid gas metres
Progress at snail’s pace 2 years after govt opens smart prepaid gas metres to private competition
Two years after the government opened the prepaid gas metre market to the private competition, none has been able to enter the fray due to lack of enough preparation.
The government’s policy, announced in 2019, initially got enthusiastic response.
Many local and foreign companies came forward to enter the lucrative market with import, development, manufacturing, marketing and supply of smart prepaid gas metre for consumers.
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None of these companies has so far succeeded in their ventures.
Officials at the state-owned Petrobangla, responsible for setting the standard and technical specifications for the metres, said they are still hopeful about the arrival of the private sector.
“Already a good number of companies made demonstrations of their metres and those were enthusiastic. We hope they will be able to meet our standard and technical specifications and finally come to the market”, said Habib Uddin Ahmed, general manager (engineering), and head of the technical committee of the Petrobangla.
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He, however, said it takes some time to meet our compliances as the things are new and such ventures involve huge investment.
Many of the companies are studying the market first and then they will either move for importing metres or setting up plants to manufacture locally. So they need time for their preparation, he added.
Sources said local Beximco and Bangladesh Smart Electrical Company Ltd., a joint venture of West Zone Power Distribution company and Chinese firm Hexing Electrical Co. Ltd, are among those showing interest in the business.
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They said the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources took up the move for opening smart prepaid metre market for private sector in 2019.
After a long discussion with the stakeholders, it published a gazette notification on December 4 in 2019 setting a detailed standard, technical specifications and compliances for the smart pre-paid metres.
It also invited private companies to come to the market with their own devices by taking approval from the Petrobangla.
Read:Titas Gas seeks foreign funding for installing 1.25 million prepaid metres in Dhaka city
3 years ago
Titas Gas seeks foreign funding for installing 1.25 million prepaid metres in Dhaka city
The country’s largest state-run natural gas distributor Titas Gas is seeking funds from two major donor agencies to implement its plan to install 1.25 million more prepaid gas metres domestic customers in the capital city.
The financing is being sought from the Asian Development Bank and Japan Bank for International Cooperation (JBIC), official sources told UNB without specifying the amount as the proposals are still at a discussion stage.
If the move succeeds, more than half the total consumers of the state-run Titas Gas Transmission and Distribution Company will come under the prepaid gas metre coverage, the sources said.
Read: Seven more city areas set to get prepaid gas metres
This will also increase the number of Titas Gas prepaid metre customers to about 1.710 million from the existing 460,000, said the official sources speaking on condition of anonymity.
Titas Gas, the oldest and largest downstream gas distribution company, has been responsible for supply of natural gas to Dhaka and its adjoining districts including Mymensingh, Netrokona, Sherpur, Jamalpur, Norsingdi, Manikganj, Munshiganj, Gazipur and Narayanganj since its founding in 1964.
“But currently the company has been focusing on just Dhaka city in installing the prepaid gas meters for household consumers where it has the largest network”, said a top official of the company. Over 70 per cent of the total 2.874 million consumers live in the city, he added.
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Official sources said that the government has been trying to obtain required funding from Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC).
“We’ve been discussing with the ADB for long to secure financing for a project to install 549,000 pre-paid meters while similar move is in progress with JBIC to get a support for installing 700,000 prepaid metres”, said a top official of the Titas preferring not to be quoted.
About the move, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said his ministry has forwarded its proposals on the issue to the Economic Relations Division (ERD) of the finance ministry.
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“If they clear our proposals, we’ll move further to receive the financial support from ADB and JBIC to implement new project for the prepaid gas metering”, he told UNB.
Official sources noted that so far the Titas Gas installed prepaid gas metres in a number of phases.
3 years ago