B Mirror Report
A significant portion of the nation’s gas supply is being taken from government businesses by state-owned and commercial power plants in order to produce electricity. However, the electricity providers’ failure to pay their bills on time has resulted in a tremendous sum of money being owed. The power plants give a total of 21,000 crore taka to six gas distribution firms. Top executives of the gas distribution companies have stated that their inability to collect these enormous debts is already making it difficult for them to run their businesses.
Individuals engaged in the energy sector indicate that while the current government is significantly more proactive than its predecessor in settling electricity payments, it has struggled to effectively collect dues from state-owned enterprises. Notably, despite the importation of LNG and the high costs associated with gas supply, the collection of gas bills remains inadequate. Consequently, state-owned companies are facing financial difficulties.
For the past three years, there has been ongoing tension regarding gas payments. As of August of the previous year, foreign entities within this sector had accumulated debts totaling 750 million dollars. Following its assumption of power, the interim government managed to reduce these arrears to $240 million by April of last year. Furthermore, it initiated the payment of substantial outstanding bills owed to both local and international power supply companies, with many electricity debts being settled more swiftly than under the Awami League administration.
As per sources from Petrobangla, the cumulative gas arrears in the power sector, encompassing both government and private entities, stood at Tk 21,790 million as of February this year. Of this amount, the Titas Gas Transmission and Distribution Company Limited (TGTDCL) is set to receive Tk 8,960 million. Titas Gas is expected to collect Tk 3,566 million from government-operated power plants and Tk 4,530 million from private power plants. However, if we consider the figures for March and April, the total arrears in this sector could surpass Tk 23,000 million, according to senior officials from the gas distribution companies. Despite the challenging circumstances for these distribution companies in recovering this money, progress has been minimal.
In response to inquiries, TGTDCL Managing Director Shahnewaz Parvez informed the media, “Titas is facing significant challenges in collecting dues. However, the situation is somewhat different for power plants. Since this is linked to supply management, taking a hard stance immediately could have adverse effects. Nevertheless, bill collection has improved slightly compared to the past.”
Increased. Last month, the rate of arrears collection reached 110 percent. We are making ongoing efforts. Due to these unpaid bills, Titas is facing challenges in covering its operating costs.
The total outstanding dues of Bakhrabad Gas Distribution Company Limited to power companies amount to 4,595 crore taka. Out of this, 165 crore taka is owed to government power companies, while 4,430 crore taka is owed to private power plants. Karnaphuli Gas Distribution Company Limited, which operates in Chittagong, has accumulated arrears of 6,976 crore taka to power plants. This includes 655 crore taka owed to government power plants and approximately 430 crore taka owed to private power plants.
Jalalabad Gas Transmission and Distribution Systems Limited has outstanding dues of 4,164 crore taka to power plants. Of this total, Tk 2,335 crore is owed to government power plants and Tk 1,828 crore is owed to private power plants.
The Western Gas Company Limited (PGCL), which supplies gas to the western region of the country, has receivables of Tk 1,736 crore from power plants. This includes Tk 1,200 crore owed to government power plants and Tk 716 crore owed to private power plants.
Sundarban Gas Company Limited is also set to receive a significant amount from power plants. The company’s dues for gas supply to the plants total Tk 1,789 crore, with Tk 1,105 crore owed to government power plants and Tk 684 crore owed to private power plants.
Two senior officials from the distribution companies, speaking to Banik Barta on the condition of anonymity, stated, “The government is now settling outstanding bills in the power sector more swiftly than before. Power plants are also receiving payments more promptly. However, they frequently raise various concerns regarding the payment of dues, often citing financial losses. The government must take a decisive role in this matter; otherwise, the companies will continue to experience revenue deficits due to these outstanding bills.
Public and private power plants rely heavily on gas supplies from the six gas distribution companies in the country. The distribution companies are expected to receive more.
