Monthly Gas Usage by both Metered & Non-metered Single and Double Burner Domestic Gas Consumers under Different Gas Distribution Companies in Bangladesh

Bangladesh Energy Regulatory Commission (the Commission) has been established through the Bangladesh Energy Regulatory Commission Act, 2003 (the Act), as an independent and impartial Commission for the energy sector. It is independent in the exercise of its functions that are in accordance with the provisions as laid down in the Act. The objective of establishing the Commission is to create atmosphere conducive to private investment in the generation, transmission and distribution of electricity; transmission and distribution of gas; transportation and marketing of petroleum products, to ensure transparency in the management, operation and tariff determination in the sectors, to protect consumers' interest and to promote the creation of a competitive market in the country. The commission determines tariff for power generation in bulk and retail as well as transmission, storage, marketing, distribution and the supply of energy at the level of end-user through public hearing with the presence of licensees and stakeholders following a transparent and accountable process. Electricity generation and transmission utilities are licensees of the Commission. Gas transmission, distribution and supply/marketing entities/companies are the licensees of the Commission. All gas distribution utilities are also the licensees of the Commission.

These distribution utilities supply gas to the end consumers under 8 (eight) categories, such as: Power, Captive Power, Fertilizer, Tea-State, Industry, Commercial, CNG and Domestic. Metered and Non-metered (single burner and double burner) consumers are inclusive into the domestic category. About 4.15 million consumers are in the domestic category (Titas Gas has 2.78 million, Bakhrabad Gas 0.491 million, Jalalabad Gas 0.417 million, Poschimanchol Gas 0.128 million, Karnaphuli Gas 0.65 million and Sundorban Gas 0.0035 Million). Of them about 99% consumers are staying under unmetered connection where about 5% are single burner connection and 95% are double.

According the Gas Marketing Guideline, 2014 (applicable for household consumers) Gas flow for a single burner consumer is 12 cubic feet per hour considering 10 working hours per day, 26 working days per month and diversity factor 0.85.On the otherhand,Gas flow for a double burner consumer is 21 cubic feet per hour considering 8 working hours per day, 26 working days per month and diversity factor 0.85.According the mentioned guideline, the household gas usage for non-metered consumers is not being measured currently. 

It is mentionable that the gas transmission and distribution companies do practice to measure the gas quantity at its receiving points. But they do sell gas to all consumer categories through the metering process except domestic non-metered consumers, i.e. the gas companies do sell gas to domestic consumers by metered and non-metered process. It is matter of fact that there is no recognized method to measure the real usage of non-metered gas consumers or to measure the real sell to the non-metered gas consumers by the distribution companies. At now the gas companies do measure the gas usage of non-metered domestic gas consumers as 82 & 88 cubic meter for single & double burner respectively. For measuring the quantity, the gas companies do divide the monthly fixed billing of non-metered domestic gas consumers (Tk. 700/month for single burner and Tk. 850 for double burner) by the per unit metered gas price of the same (9.10 tk./cubic meter). As a result, the calculative value becomes higher than that of the real gas usage and this calculation performs as a factor of system gain. Concern has been raised in different public hearings about the issue. As such a regulator of gas sector, BERC has taken step to measure the real gas use by the non-metered household gas consumers. 

Objectives of the Study

The broad objective of the study is to develop an average gas usage baseline of non-metered and metered domestic consumers under the consideration of meter type and family size. This study will also quantify the savings in gas if non-metered consumers are converted into metered.

Sample Design and Procedure

In the light of the broad objective of this study, the sample design will be constructed in a manner so as to collect data on gas use for the non-metered and metered domestic consumers. The sample will include both single and double burner connection as well as small, medium and large families.  The sample will be selected from each of the six companies of Petrobangla and from different districts of the country. The companies are Titas, Bakhrabad Gas, Jalalabad Gas, Poschimanchol Gas, Karnaphuli Gas, and Sundorban Gas. 

The flowchart below shows the sampling strategy;

Time frame of the study

The study will be conducted between February, 2019 and June, 2019.

Research Team

The study will be carried out by a team of BIDS researchers –

Study Director- Dr. Nazneen Ahmed, Senior Research Fellow, BIDS and 

Members: Dr. Zabid Iqbal, Research Fellow, and Mr. Maruf Ahmed, Research Associate, BIDS.

Sponsor: Bangladesh Energy Regulatory Commission (BERC).