Bangladesh News

A large number of domestic and commercial users of gas operated alternative power generators are using the equipment with illegal gas connections without any permission from Titas Gas Transmission and Distribution Company Ltd (Titas Gas).

Because of the rampant illegal use of natural gas (NG) to run alternate power generators in different areas of the country, the government is being deprived of a large sum of tariff on the use of the scarce natural resource.

Thousands of illegal users are purchasing China made gas operated power generators marketed under local labels such as Green Generator, Anik Power, Power Plus, Intraco Generator, Europa Generator, SS Generator, and Arora Generator from different markets like Nawabpur Machinery Market and Dhaka Stadium Market in the capital and in other places.

The generator distributors are also helping the illegal users to hook up the equipment with illegal natural gas supply lines.

The distributors do not even ask their clients to show or get permissions from Titas Gas. “As gas generators are in much demand, and getting permission from Titas Gas is time consuming as well as difficult, many domestic users install the generators without any permission. But, to be on the safe side one can apply”, said an official of Intraco Energy Ltd.

“Technicians sent by the distributors don’t refuse to connect the generators with the gas line set up by Titas Gas for kitchen stoves,” said a domestic user of such a generator in Dhanmondi area of the capital.

The distributors launched advertisement campaigns with catchy lines like ‘no need to think about fuel cost, run your generator with natural gas’, through newspapers as well as roadside billboards. They also launched an aggressive marketing campaign over the telephone, with offers of providing home services and warranties for the generators.

Power generation capacities of dual system gas powered generators, which can be run with either liquefied petroleum gas (LPG) or NG, are between 1 kilovolt-ampere (kva) to 5kva. Domestic users usually prefer 2kva to 3kva generators.

A 2kva generator produces 1,800 watts of electricity, which is sufficient to run five fans, five tube lights, one refrigerator, one TV and a computer, while consuming 24 cubic feet (cft) of NG per hour. If a consumer uses such a generator one hour daily all through a month, it consumes 720cft of gas, costing Tk 92 a month at the subsidised rate of Tk 4.59 a cubic metre, fixed for domestic use.

Visiting Nawabpur Machinery Market this correspondent found that everyday on an average each shop sells six gas operated power generators. A seller at the market told The Daily Star, “The price of a 2kva generator with a self starter is around 25,000 taka, while one with a manual starter having the same capacity costs around 22,000 taka.”

“These generators got a huge market this year. One has to pay just the price of the generator and our technicians will connect it with the kitchen stove gas line using a hose. There is no chance of accident, as the pipe is connected with a turbo charger or compressor, which provides smooth gas supply to the generator. The whole procedure costs about 400 taka. After installation, users get smooth electricity supply without paying a paisa”, the seller said.

However, the Titas Gas authority informed The Daily Star that they are not aware of such illegal gas connections to power generators. When the managing director of Titas Gas was contacted for comments, the gas supply authority in a written statement stated that the company is giving only limited permission for using NG for alternative power generation only in the capital, on a direction from the government issued on March 13, 2007.

So far Titas Gas gave permissions to 25 domestic subscribers in upscale neighbourhoods of Gulshan, Banani, Baridhara, Dhanmondi, and Lalmatia in the capital. Those subscribers installed converted gas operated generators of different popular brands such as Honda, Walton, and Navana, said an engineer of Titas Gas.

According to sources, Titas Gas is giving permission for up to 10kva gas operated generators, which consume 120cft of NG an hour amounting to 3,600cft per month if a consumer uses the generator one hour daily all through a month.

At a time when the whole country is facing a severe NG crisis, for which gas supply is being rationed even to industrial zones, such a decision of giving permission to use natural gas for alternate power generation in households, has raised questions.

BGMEA President Anwar-ul-Alam Chowdhury said, “When the government can’t even provide natural gas support for smooth operation of industrial zones, such a decision of allowing domestic users to generate electricity using natural gas does not reflect a responsible attitude on the part of the government.”

“In fact, the government is concentrating on minor interests, instead of focusing on the need of the industrial sector for its proper growth,” he observed.

According to the sources, so far no Chinese dual system gas operated generator has been installed by Titas Gas engineers. “A few dual system gas operated generator distributors approached us for permission to use natural gas, but were refused. We will investigate illegal use of the equipment,” said a high official of Titas Gas on condition of anonymity.

Meanwhile, an official of Total Power Generation Company, a distributor of gas operated generators, said, “We have been marketing these generators for the last three years. This year the demand has increased. Our brand is the most popular one. So far we have sold over 300 generators of different capacities.”

Gas operated power generators have become so popular that distributors of diesel operated generators of popular brands are converting their generators to dual system gas operated ones, to infiltrate the lucrative market.

A manager of an outlet of Walton told this correspondent, “We suggest our clients that they use liquefied petroleum gas to run the generators. For conversion one has to pay 15,000 taka extra.”

Purchasing converted gas operated generators of such popular brands, buyers usually use NG to run the equipment instead of using LPG. “Liquefied petroleum gas is quite expensive. A 2kva gas generator runs for only 20 hours with a 12kg LPG cylinder, which costs 1,280 taka. That’s why we use natural gas from kitchen lines,” said the same domestic user in Dhanmondi area.

When the illegal user was asked why he was not getting permission from Titas Gas, he said, “It’s not so easy to get a permission.”

Admitting that the problem of illegal use of natural gas in producing alternative power does exist, a high official of Titas Gas said, “The government instruction is quite confusing regarding giving permissions. The term, limited permission, is not adequately explained in the instruction.”

“Even the tariff has not been reviewed. After giving permission we attach meters to a supply line. Domestic users have to pay 4.59 taka for using each cubic metre of natural gas. After setting the meters for generators they however don’t need to pay for the gas supply to their kitchen stoves”, he added.