BERC (Bangladesh Energy Regulatory Commission) could not amend the petroleum regulations even after four months. Bangladesh Petroleum Corporation (BPC) is doing the price coordination formula with the international market taking the opportunity of this laxity of the commission.

But in the inter-ministerial meeting (December 14, 2022) it was decided that BERC will determine the price of oil. In that meeting, it was decided to speedily approve the BERC regulations subject to amendment pending for a decade.

In that meeting, the then Senior Secretary of Energy and Mineral Resources Division gave his opinion on determining the price of oil and gas according to the international market price. The minutes of the meeting showed that after the opinion of the Secretary, BERC brought forward the model for determining the price of LP gas every month. The pricing of oil and gas is discussed according to the same model. If possible every 3 months re-fixation of rates is decided. For this, the need to change the draft regulations is highlighted.

BERC is supposed to fix the prices of all types of fuel as per the BERC Act. Although prices are fixed in the case of electricity and gas, prices are being fixed by executive order as the petroleum rules are not finalized. BERC submitted the approval of Petroleum Products Retail Tariff Regulations, 2012, Petroleum Products Storage Marketing and Distribution Regulations, 2012, and Petroleum Products Transport Tariff Regulations, 2012, but the ministry kept it on hold for a decade. According to the decision of the inter-ministerial meeting, the regulations were sent back to BERC for amendment in January.

When sent to BERC, the Abdul Jalil Commission was at the end of its term. The Jalil Commission left it for the new commission without taking up the task. Even if the new commission comes, it does not show much attention. Many regulations are in the freezer. According to Commission sources, Deputy Director (Tariff) Kamruzzaman has been given the responsibility; he is yet to prepare the draft.

BERC Member (Administration, Finance and Law) in reference to BPC's activities on the ground of BERC's delay. Muhammad Yamin Chowdhury's attention was drawn. He told Barta24.com that the price can be done by any organization. Whether BPC does it or we do it is not a big issue here.

Chairman of BERC Nurul Amin told Barta24.com, after I joined, I ordered to prepare the regulations in the light of the working papers of the ministry. But not presented till now. In response to the question of when it can be finalized, he said, we want to send it to the ministry by May.

Energy and Mineral Resources Division sources said that fuel oil will be sold and bought at the international market rate from next September. If the international market increases, it will increase, and if it decreases, it will decrease. Adjustments will be made every two or three months. It is only a matter for the government now, the terms of the IMF loan include withdrawal of subsidies so the government is very active.

BERC and BPC have been at loggerheads since the beginning on the issue of oil prices. BPC and the Ministry do not want to miss the issue. That is why regulations are suspended. Now when the opportunity has come forward it is going to be missed due to laxity of BERC.

Senior Vice Chairman of Cab Energy Affairs Advisor Shamsul Alam told Barta24.com that the BPC and the ministry have been illegally fixing oil prices for so long by hanging the regulations. They still want to hold onto it. And those assigned to BERC will not perform legal duties. He does not want to do it, he is working in obedience to the government. Public interest is being undermined, unscrupulous businessmen are looking after interests and nothing is going according to norms. Government takes dividends from companies.

A BERC official told Barta24.com, on condition of anonymity, that the regulations do not require much amendment. The ministry could have done what is supposed to be done, here only a line can be added that the price can be adjusted after two or three months. Basically, if the regulations submitted in 2012 come forward, the ministry will be embarrassed, hence this drama.

Last January, Additional Secretary of Energy and Mineral Resources Division, Khalek Mallick told Barta24.com that it has been decided to bring some additions to the regulations of BERC. BERC will also determine the price of fuel oil. In that light, it was decided to amend the draft regulations in the meeting.

BERC has been fixing LPG rates every month. Costs and commissions of importers have been finalized through public hearing. Now only the gas price fluctuates every month. That is, if the price increases in the international market, the product price increases, if it decreases, that part decreases. A similar approach is being considered for diesel petrol as well. Operating costs including shipping costs and import costs will be separated. Operating cost will remain unchanged and after 3 months the country's market price of fuel oil will be more or less in line with the international market rate. It has been decided to finalize the pending BERC regulations with amendments so that BERC can function within the legal framework.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said, we are thinking about opening the fuel oil market. There can be private companies as well as government companies. Trying to figure out a method, if the price increases in the international market, it will increase in the country, and if it decreases, it will decrease in the country. The government no longer wants to subsidize fuel oil.

According to BPC data, the demand for fuel oil in the country was 62 lakh 99 thousand 730 metric tons in the financial year 2020-21. Sector basis fuel has been used the most in the transport sector, 39 lakh 63 thousand 725 metric tons equal to 62.92 percent were used in that financial year. Next, there is 9 lakh 75 thousand 604 metric tons in the agriculture sector; the demand in the electricity sector was 6 lakh 52 thousand 66 metric tons. While 4 lakh 50 thousand 437 metric tons in industry; 97 thousand 600 tons in households and 1 lakh 60 thousand 298 metric tons in other sectors.

High voltage batteries are coming as an alternative to standby generators to ensure uninterrupted power. This method is being used in many countries; Bangladesh is also going to implement it on a small scale in pilot form by the electricity department.

Each battery has more capacity than two-four quick rental power plants. Each unit of lithium ion batteries is available up to more than 100 MW. Which are equal in size to each container. Recharge through high voltage or medium voltage lines. Again, if the power supply is interrupted for any reason, the nano will activate in less than a second. These batteries are capable of providing uninterrupted power supply for 4 to 5 hours. It is considered helpful in industries, markets and apartments. Currently diesel and gas generators are being used in these places. which requires a large amount of fuel. Again the issue of environmental pollution is also involved.

India plans to install 200 GWh by 2040. NTPC and Tata Group have installed 10 MW batteries in their facilities. Bangladesh has huge variations in electricity demand over time and season. The power division is struggling to handle these ups and downs. A specialized peaking power plant has to be kept in the system to meet the increased demand in the evening. Battery technology is expected to be very fruitful. Installation of batteries will eliminate the need for peaking power plants. If such a storage system can be built in the region, it will be able to easily meet the increased demand in the evening and night. At the same time, standard power supply will be possible by reducing the fluctuation of electricity voltage. Many believe that this can be of great help to the overall power sector.

The battery will be fully charged in the early morning when the demand is very low, and will provide power in the evening or at other times when there is load shedding. Power Cell believes that it will also help to keep the system operational when large coal-based power plants including Rooppur nuclear power plant come into production.

Engineer Saleh Ibn Sharif, Assistant Director (Performance Monitoring) of Power Cell, a development and research institute of the Electricity Department, told Barta24.com that this method is being used in many countries including India. India has undertaken a grand scheme, we want to initially implement it in pilot form and verify the results. Plans are under way to test fit a garment. The garment has an approved demand of one and a half megawatts. But the actual demand is 485 kWh. We are preparing to install 2 megawatt hour batteries.

In response to a question, he said, the cost of a battery of one megawatt capacity will be around Taka 3 crore. They have a life time of 10 years. It will be cost effective than using diesel generators. They will recharge off-peak when power demand is low. By recharging at that time, the government will not have to keep the peaking power plant on standby. This will reduce the average production cost of electricity.

He further said that setting up a power plant is time-consuming, but these batteries can be purchased and installed on a turn-key basis to run the power system. Installation is possible within 1 month if there is a power shortage in any region. Our Mymensingh zone and Rangpur are experiencing power shortages many times. Electricity has to be taken from Chattogram or Barishal zone to deal with the shortage, which is increasing system losses. If batteries are installed at substations, there will be reserves. Uninterrupted power will be ensured during peak times. These batteries are becoming modern day by day considering many advantages for the overall system.

The major complication of Bangladesh's power sector is the huge difference in demand over time. During the irrigation season, the demand exceeds 16,000 MW, and in winter, the demand falls below 10,000 MW. Production capacity should be kept ready with reserve margin taking into account the maximum demand. Most of which remain unused. In addition, the overall cost of production is increasing while charging. The government, however, plans to import power from Nepal as well as export it during winter. Hydroelectricity is the main source of electricity in Nepal, production decreases when mountain river water decreases in winter when they have to deal with the increased demand to use room heaters. At that time, power plants sit idle in Bangladesh.

Banskhali coal-based power plant has started commercial production. Ebadat Hossain Bhuiyan, CFO of SS Power One Limited, confirmed to Barta24.com that the power plant started commercial production at 12:00 PM on September 17.

It has continuously supplied 660 MW of electricity since the start of production. The two units of the power plant have a production capacity of 1320 MW. Commercial production has started from one unit in the first phase. As usual, the second unit will come into production within the next 1 month, said Ebadat Hossain Bhuiyan.

The day will be a milestone from many aspects including the power sector, Banshkhali Power Plant. This is the highest record so far as private single investment and foreign investment in private projects has also been recorded through this. The cost-effective thermal power plant has also touched a record in financing through foreign banks in the private sector. 1.78 billion US dollars in funding has come into the project. On the other hand, S Alam Group has financed from its own sources about Taka 6500 crores.

So far only large-scale coal-based power plants have been built under government ownership in Bangladesh. One is the Payra 1320 MW thermal power plant jointly invested by the Bangladesh-China government. The other is Rampal 1320 MW power plant jointly owned by Bangladesh-India. Although it is the third power plant in the list, it is the first large power plant under private ownership.

Bangladesh awarded the first 3 private sector contracts for coal-fired power plants in June 2012. The contracts executed in the first phase were with Orion Group. On the other hand, S Alam Group signed a contract to set up a coal-based power plant on February 16, 2016. Orion's power plant is far from coming into production, and has yet to begin operations. After 4 years, the nationally renowned S Alam Group has been able to reach the desired goal, leaving behind others. The power plant has brought good news for the entire power sector. Electricity here will be affordable compared to others. This electricity will be cheaper than the (imported) power of coal-based plants of the Indian company Adani Group, or even Pyara, jointly owned by the Bangladesh-China government.

According to Bangladesh Power Development Board sources, electricity will be available at half the price compared to Furnace Well based power plants. And when compared with diesel, the cost is one-third. Currently, coal-based power generation ($125 per tonne) costs Tk. 6.50 per unit, furnace oil (Tk. 85 per liter) costs Tk. 19 and diesel power generation costs about Tk. 28 per unit. If compared with furnace oil, the unit will save about Tk.12. If Banskhali is in full production, it will supply about 300 million units of electricity per day. It will be about 95 crore units per month. Even if savings are taken at the rate of Tk. 12 per unit, the government will save more than Tkk. 1140 crore.

The 275 meter tall colored chimney of the power plant is visible from afar. A specialized jetty has been constructed at sea shore at 2 thousand mt per hour. Tons of coal can be redeemed. Two conveyor belts attached to the coal yard have a capacity of 4,000 MT. Covered conveyor belts have been installed keeping in mind the environment. A high net enclosure is provided around the coal yard. Two advanced FGDs (Flue Gas Desulphurization) have been constructed long ago. 2 silos have been constructed for Ash storage each having a capacity of 2,600 Metric ton And there is a huge Ash pond spread across 80 acres. Heavy wave walls are built to protect against natural disasters like cyclones or floods.

The large power plant has been set up in the Gandamara area of Banskhali (Chattogram) near the Bay of Bengal. It is owned by famous local company S Alam Group, Chinese company Sepco 3 and HTG. Local company S Alam has a 70 percent stake, while Chinese companies SEPCO 3 and HTG hold 30 percent.

The power plant has started playing a huge role in the economy of Bangladesh even before its commissioning. Already about Tk. 1300 crores of tax, VAT and other fees have been deposited in the government exchequer from the project. 650 million dollars worth of goods and services were purchased from within the country. Not only that,7 thousand people have been employed here for 4 consecutive years, including the time when the employment crisis was being created during the great crisis like Corona. The center will employ 1200 people.

Bir Muktijodha Maqbool E-Elahi Chowdhury, a former member of BERC, Bangladesh's primary energy expert, told Barta24.com that this is undoubtedly a milestone for Bangladesh's economy. Good effort on personal initiative. When a big investment succeeds, many investors get excited. That is, one investment leads to another investment. From that point of view, it is positive for the economy of Bangladesh. Mohammad Hossain, director general of Power Cell, a development research institute of the power department, told Barta24.com that till now coal is considered cost-effective after gas. That is why such power plants are very positive for our economy. When the plant comes into production, the average production cost of electricity will come down. A few days ago when oil prices hiked, when there was some power shortage, SS Power gave good support when it came to the test run.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said that the smart power and energy sector of the future will be developed in the hands of the youth. The Prime Minister is working tirelessly to create equal opportunities for the future youth.

He said these while speaking as a panelist at 'Let's Talk' titled 'Energy and Finance' organized by CRI and Young Bangla on Thursday (September 15). The youth participating in Let's Talk asked various questions to the State Minister and expressed their views on the future power and energy sector of Bangladesh.

He also said Bangladesh will be a developed, modern and smart Bangladesh by 2041. Bangladesh will be led by today's youth. The State Minister answered various questions of the youth and assured them that their views would be taken seriously.

The state minister said that there will be a lot of investment in gas and electricity transmission, construction of smart grid, installation of modern technology in the electricity and energy sector, renewable energy, offshore and onshore wind power, lithium battery factory, cyber security, oil and gas exploration etc. in the coming days. Charging stations or charging policies have been implemented. Investment and innovative thinking in the electric vehicle sector will increase the participation of young people in the future. The government is working on the challenge of uninterrupted and affordable power supply. In the next 15 years, the power sector needs about 75 billion dollars.

Calling upon the youth to play a role in increasing the awareness of energy saving, the state minister said that not only awareness, the youth should come forward with innovative thinking. Innovative competition in the energy sector is resuming very soon.

The Ministry of Power and Energy always welcomes new innovations and technological breakthroughs. EPRC provides one-time grants for research and innovation projects.

If anyone has any such project, he urged them to submit it to the Bangladesh Energy Research Council of the Ministry.

Prof. Celia Shahnaz of BUET and Divisional Coordinator of Green Voyage Ishrat Jahan were also present as panelists moderated by Saash Mostafiz.

The government is getting stricter to prevent illegal gas connections; it has been decided to bring fines as well as criminal cases. Petrobangla has been asked to submit the necessary regulations for this.

Petrobangla Chairman Janendra Nath Sarkar told Barta24.com that Petrobangla is working on the issue. It is in its final stage, will be sent to the Ministry very soon. Petrobangla chairman said in response to the question that what kind of punishment is there, we will inform about this after finalizing it and sending it to the Ministry. I don't want to talk about it right now.

He said, ‘we are working to reduce the overall system loss of gas. One of these is theft; effective measures have been taken to prevent that theft. After illegal disconnection they are asked to follow up again after one month if they are connecting again. If any officials and employees of the distribution company are involved, action has also been ordered against them.’

Janendra Nath Sarkar said, ‘we have divided the zones, now we know how much gas is going to which zone, how much we are getting the bill. DMDs have been told to minimize system losses in their zones. Action will be taken against them if they fail to reduce the system loss.’

Touhidul Islam, General Manager (Vigilance) of Titas Gas Transmission and Distribution Company told Barta24.com that a strict law in this regard is the need of the hour. Re-establishing the connection after invalid disconnection. The operation has to be conducted multiple times in the same area. If this continues, it will be difficult to completely stop gas theft.

In response to a question, he said, ‘we can only disconnect. We have nothing else to do. I run the mobile court, I go with the executive magistrate and he gives fines or punishments. Sometimes fines are given as well as imprisonment.’

Titas Gas Transmission Company General Manager (Metro Dhaka Marketing Division-North) Md. Imam Uddin Sheikh told Barta24.com, if someone steals, there is a law, there is a judiciary and there are many organizations. Neither Petrobangla nor Titas have any power to punish. If the culprit is my customer, I can fine him. The amount of penalty varies from case to case. If someone uses the residence illegally, we can collect a bill equal to one year. But if the user is not a Titas subscriber, we can just cut the line. In some cases, a complaint is made to the police station. An executive magistrate will be required to punish or fine illegal users.

The largest company is Titas Gas Transmission and Distribution Company and most thefts are also from Titas. Among the 6 gas distribution companies, Titas alone is distributing more than half of the gas, 55.23 percent. Gas theft cannot be prevented even with raids throughout the year. Titas Gas has spent Tk. 6 crore 46 lakh in the illegal disconnection campaign in the last 21 months (October-2021 to June-2023).

The managing director of the company, Engineer Harunur Rashid Mollah said in a press conference recently that 28 thousand 398 operations have been conducted with 330 mobile courts from October 2021 to June 2023. In these operations, 668.50 kilometers of illegal lines, 6 lakh 2 thousand 884 stoves were disconnected due to illegal connections and dues, and a total of 6 lakh 3 thousand 975 connections were disconnected. 250 industrial, 329 commercial 55 captive 10 CNG filling stations have been disconnected due to illegal usage. Additional bills of Tk. 321 crore 81 lakh and fine of Tk. 91 crore 25 lakh have been levied through these operations. Out of this, Tk. 147 crore 80 lakh, 37 crore 41 lakh taka have been collected for additional bills.

He also said that action is being taken against the people of Titas due to the complaint. During my time I have dismissed 8 people, taken action against 228 people including 16 suspended. 91 people have been transferred for punishment. Action has been taken against 50 to 60 contractors. Regarding re-connection after separation, he said, some connection may be needed. But monitoring is being done closely.

Recently, gas supply was stopped in Kamrangichar area of the capital to prevent illegal connections. There was a lot of controversy about shutting the line of legitimate customers. Many times it is seen that the connection is disconnected in the morning and reconnected in the afternoon. Thus a kind of thief-police game is going on between Titas and illegal users.

Titus Gas Managing Director Engineer Harunur Rashid Mollah told Barta24.com that they have conducted many operations regarding illegal connections. The campaign will continue. We are doing public relations, saying that we need your cooperation to prevent theft, people are also becoming aware. Customers have been told that after cutting the line, if the line comes back, the line in that area will be closed. We got very good results. But more stringent laws are needed.