The “acceptable” system loss should have been worth Tk 2.38 billion, according to the actuary constants that helped Titas make the financial report of the year.
In the report cleared in Titas’ annual general meeting on Dec 22, Z Halim & Associates said the government lost more than Tk 5.31 billion in revenues to the “additional” system loss.
It cited “illegal use” of gas through “unregistered or illegal connections” as the “possible reason” behind the loss of gas or revenue.
The Anti-Corruption Commission or ACC in a recent report also identified illegal connections as the most prominent source of graft among 22 fields of irregularities in the utility agency.
Titas distributes 56 percent of the total gas sold by the six government companies. It is responsible for gas transmission to capital Dhaka and 11 other districts. Its subscriber base was over 2.8 million strong in June, 2019.The ACC found most illegal gas connections were given to industrial units in Savar, Ashulia, Gazipur, Narsingdi and Narayanganj.
Some “dishonest” employees of Titas give the connections without registration in collusion with some other people outside the company, the ACC said.
Z Halim & Associates noted that Titas spent Tk 9.5 million to cut off 7,018 illegal connections in the year, which points to the fact that the distributor was giving connections without registration.
Titas bought a little over 17,570mcm gas and sold around 16,570mcm after the system loss and its own use.
The company, listed on the stock market, earned nearly Tk 141.53 billion with a net profit of around Tk 4.65 billion. Investors believe it could give more dividends if it did not lose revenue to system loss.
Its Managing Director Ali Mohd Al-Mamun cited a shift in its accounts from billed consumption to actual consumption as one of the reasons behind the highest system loss in five years after gradual decline in the past few years.
The company provides gas with high heating value, but does not consider it while counting the amount, which he said another reason behind the system loss increase. Both reasons were mentioned in the report as well.
Mamun also blamed leaks caused by other utility agencies for the system loss.
But Shamsul Alam, an advisor to the Consumers Association of Bangladesh or CAB, alleged Titas’ claims about the reasons behind system loss were flawed.
“Because it does not have the capacity to count actual consumption,” he said.
He also dismissed the claim that providing gas with higher heating value was causing the system loss.
“They [Titas] don’t supply the amount they are supposed to. The consumers do not get the gas they pay for because of low pressure,” he said.