Methods of collecting data/Sampling method
For survey purposes many methods were used such as a questionnaire was developed along with an interview which was used to gather clear understanding and a deeper insight into the conversation of the topic. Both qualitative and quantitative methods were used. The questionnaire used in this study is given in the Appendix B. The questionnaire survey was implemented for collecting first hand, primary data from the project area. Before filling the questionnaire, the general idea of the research objectives was addressed to the population sample chosen. After that, the questionnaire was distributed, and participants were requested to fill the questionnaire based on the real-life experience they had regarding the pre-paid metering system. Both open end and close end questions were set in the questionnaire to reveal the real perception of the respondents.
Selection of Study Area
Keeping the matter of having a time constraint in mind and for convenience purposes for the collection of data in the questionnaire, participants have provided data feedback through e-mail. Along with that, some of the data for questionnaire was were collected from the Office.
Sample Size
Respondents were categorized as:
- TGTDCL company employees,
- Personnel who are dealing with the pre-paid projects
- Existing customers who are using these types of meters
Data processing and Analysis/Analytical Framework
Data collected had to be processed through cleaning, editing, arranging before statistical analysis could be conducted. The statistical analytical tool used was Statistical Package for Social Science (SPSS) which is used to analyze and interpret the subject matter. Along with that, Microsoft Excel has been used for preparing the data tables& other tables.
System loss Reduction Programme:
a) System loss is a major issue and so TGTDCL has been executing a rather different action plan to combat the issue of system loss or areas for unaccounted gas in terms of input and output, repairing and fixing responsibilities, along with sealing RMS, the calibration and exchange of the old meters, extreme attentiveness, disconnecting of unauthorized connections by the operational force, prompt clearance of court cases, electronic volume corrector, flow/pressure logging device etc. Steps are taken to assure appropriate gas bill for their industrial customers through using a computerized remote-metering system for the meter readings in order to tackle system loss. These measures are taken in the following areas: Narayanganj, Sonargaon Tongi, Narsingdi, Ashuganj and Brahmanbaria and metro sales zone. An orientation program is being put into place by assigning officers in order to collect on these meter readings through recurrent visits to the premises if the customers. These officers are also responsible for Meter sealing and testing programs which have to be completed on effectively on time. In spite of the efforts made by TGTDCL, system loss reduction at a chosen level could not be attained due to scarcity of competent manpower, construction of unlawful by-pass line by the fraudulent customers, sanction order of the Honorable Court in favor of cheating customers, prohibited re-connection from disconnected risers, unsanctioned use of additional appliances, excessive gas consumption by the non-metered domestic clients, meddling on RMS and meter tampering etc.
b) To decrease system loss and to achieve collecting on arrear gas bills as directed by higher authority, TGTDCL designed eight inspection teams and two disconnection teams to examine all the industrial customers’ locations to find out if there is unlawful use of gas by deceitful customers.
Table 1: Difference between purchase and sale thus system loss/gain
year
|
Quantity (mmcm)
|
percentage
|
2014-2015
|
625.62
|
3.90
|
2015-2016
|
479.22
|
2.81
|
2016-2017
|
232.89
|
1.35
|
2017-2018
|
201.19
|
1.17
|
2018-2019
|
1003.83
|
5.71
|
Titas authority has taken steps to reduce system loss. Authority has taken decision to cut off unauthorized gas pipeline and set up mobile court. BERC order #2018/03 dated on 16-10-2018 to 18-09-2018 to consider Actual Consumption rather than billed Consumption. In that case higher heating value is not included in 2018-2019 financial year gas sales so the gas sale quantity decreased and a significant increase in system loss is seen.
Table 2: Gas Price in Bangladesh
Explanation
|
Unit
|
01 July 2019 (Taka)
|
Electricity
|
Cubic Meter
|
4.45
|
Fertilizer
|
‘’
|
4.45
|
Field Gas for CNG
|
‘’
|
43
|
Captive Power
|
‘’
|
13.85
|
Industry
|
‘’
|
10.70
|
Tea Garden
|
‘’
|
10.70
|
Commercial-Hotel & Restaurant
|
‘’
|
23
|
Commercial- Small & Medium Industry
|
|
17.04
|
Residential-Meter
|
‘’
|
12.60
|
Residential- Non-Meter
|
One stove
|
925
|
Residential- Non-Meter
|
Two stoves
|
975
|
Table 3: Customers of TGTDCL in previous five years
Customer Type
|
Number of Customers
|
2014-2015
|
2015-2016
|
2016-2017
|
2017-2018
|
2018-2019
|
POWER
|
35
|
38
|
43
|
44
|
45
|
FERTILISER
|
3
|
3
|
3
|
3
|
3
|
INDUSTRIAL
|
4590
|
4604
|
4610
|
5128
|
5279
|
CAPTIVE
|
1080
|
1085
|
1088
|
1630
|
1680
|
CNG
|
331
|
333
|
335
|
382
|
394
|
COMMERCIAL
|
10913
|
10917
|
10919
|
11688
|
12075
|
DOMESTIC
|
1880353
|
2006013
|
2717536
|
2764247
|
2846419
|
Out of all other customers, domestic customers are the targeted area of analyzing the prepaid meters installation.
Table 4: Calculation of System Loss in 2018-2019
Month
|
Net Purchase
|
Sales with condensate
|
Total System Loss
|
Allowable System Loss
|
Net System Loss
|
System Loss In %
|
Allowable System Loss %
|
Jul-18
|
1,437,094,642
|
1,381,705,632
|
55,389,010
|
-
|
55,389,010
|
3.85%
|
0.00%
|
Aug-18
|
1,327,546,861
|
1,427,890,089
|
(100,343,228)
|
-
|
(100,343,228)
|
-7.56%
|
0.00%
|
Sep-21
|
1,394,910,064
|
1,365,095,313
|
29,814,751
|
13,382,977
|
16,431,774
|
0
|
0
|
Oct-18
|
1,481,862,326
|
1,388,879,332
|
92,982,994
|
32,843,575
|
60,139,419
|
4.06%
|
2.22%
|
Nov-18
|
1,426,311,072
|
1,383,522,133
|
42,788,939
|
31,608,365
|
11,180,574
|
0.78%
|
2.22%
|
Dec-18
|
1,471,573,737
|
1,333,352,234
|
138,221,503
|
32,641,542
|
105,579,961
|
7.17%
|
2.22%
|
Jan-19
|
1,567,922,200
|
1,368,884,977
|
199,037,223
|
34,796,091
|
164,241,132
|
10.48%
|
2.22%
|
Feb-19
|
1,364,712,156
|
1,351,587,152
|
13,125,004
|
30,133,850
|
(17,008,846)
|
-1.25%
|
2.21%
|
Mar-19
|
1,583,909,157
|
1,400,549,316
|
183,359,841
|
35,177,001
|
148,182,840
|
9.36%
|
2.22%
|
Apr-19
|
1,529,797,853
|
1,359,993,482
|
169,804,371
|
33,967,958
|
135,836,413
|
8.88%
|
2.22%
|
May-19
|
1,593,848,760
|
1,457,915,328
|
135,933,432
|
35,414,534
|
100,518,898
|
6.31%
|
2.22%
|
Jun-19
|
1,393,396,035
|
1,349,675,833
|
43,720,202
|
30,868,006
|
12,852,196
|
0.92%
|
2.22%
|
Total
|
17,572,884,863
|
16,569,050,821
|
1,003,834,042
|
310,833,899
|
693,000,143
|
3.94%
|
1.77%
|
Allowable rate of system loss is 2.22%. System loss fluctuates and sometimes it goes beyond the allowable rate. Cost of system loss is shown in the Cost of sales in the income statement. The difference between the purchase and sale is the system loss. While gas is being transmitted to TGTDCL to GTCL system loss occurs because of leakage or lack of proper measurement channel. In the year 2018-2019 separately every month’s system loss, purchase, sale, allowable amount and net system loss amount is shown. System loss fluctuates with the volume of purchase and sale of gas, consumption and wastage of gas.
Table 5: System loss in the cost of sales of financial year 2018-2019
Total Cost of sales
|
134,768,393,053
|
Net Purchase Qty. in CM
|
17,572,884,863
|
Cost per CM
|
7.67
|
System Loss Qty. in CM (after Allowable loss)
|
693,000,143
|
Cost of system loss in Taka (after Allowable loss)
|
5,315,311,097
|
Total margin loss against system loss
|
173,250,036
|
Total revenue loss against system loss
|
5,488,561,133
|
The margin loss and revenue loss charged against system loss in financial year 2018-2019 income statement. The target is to lessen system loss to a tolerable level whereas allowable rate of system loss of TGTDCL is 2.00%. After the prepaid metering system consumption has reduced so does revenue eventually the system loss has also decreased. It happened because system loss does not depend on the volume of gas sale rather it depends on the per unit of gas.
Table 6: Calculation of System Loss in 2019-2020
Month
|
Net Purchase
|
Sales
|
Total System Loss
|
Allowable System Loss
|
Net System Loss
|
System Loss In %
|
Allowable System Loss %
|
Jul-19
|
1,415,913,308
|
1,387,595,042
|
28,318,266
|
28,318,266
|
-
|
0.00%
|
2.00%
|
Aug-19
|
1,313,453,560
|
1,287,184,489
|
26,269,071
|
26,269,071
|
-
|
0.00%
|
2.00%
|
Sep-19
|
1,401,575,445
|
1,373,543,936
|
28,031,509
|
28,031,509
|
-
|
0.00%
|
2.00%
|
Oct-19
|
1,358,379,004
|
1,331,211,424
|
27,167,580
|
27,167,580
|
-
|
0.00%
|
2.00%
|
Nov-19
|
1,350,590,094
|
1,323,578,292
|
27,011,802
|
27,011,802
|
-
|
0.00%
|
2.00%
|
Dec-19
|
1,325,273,197
|
1,298,767,733
|
26,505,464
|
26,505,464
|
-
|
0.00%
|
2.00%
|
Jan-20
|
1,395,597,774
|
1,367,685,819
|
27,911,955
|
27,911,955
|
-
|
0.00%
|
2.00%
|
Feb-20
|
1,350,279,288
|
1,323,273,702
|
27,005,586
|
27,005,586
|
-
|
0.00%
|
2.00%
|
Mar-20
|
1,346,175,891
|
1,319,252,373
|
26,923,518
|
26,923,518
|
-
|
0.00%
|
2.00%
|
Apr-20
|
779,749,066
|
764,154,085
|
15,594,981
|
15,594,981
|
-
|
0.00%
|
2.00%
|
May-20
|
1,153,600,608
|
1,130,528,596
|
23,072,012
|
23,072,012
|
-
|
0.00%
|
2.00%
|
Jun-20
|
1,226,190,130
|
1,201,666,327
|
24,523,803
|
24,523,803
|
-
|
0.00%
|
2.00%
|
Total
|
15,416,777,365
|
15,108,441,818
|
308,335,547
|
308,335,547
|
-
|
0.00%
|
2.00%
|
Here, after installing prepaid meters in the financial year 2019-2020, the amount of total system loss and allowable system loss was the same. Thus, no system loss is measured. But there is still uncertainty because of the improper gas line, leakage in the pipeline and less metered intake point. The prepaid metering system has made no progress in recent years. GTCL supplies around 1500-1600 million mmcf of gas per day through the channels where there is no metered point. As a result, proper and accurate quantities cannot be measured. GTCL suggests installing a meter at every intake point.
Table 7: Revenue and Cost of Sales (BDT in Crore)
Year
|
Revenue
|
Cost of sales
|
2014-15
|
8,271.10
|
7,092.01
|
2015-16
|
11,379.98
|
10,569.06
|
2016-17
|
12,570.56
|
11,844.73
|
2017-18
|
14,216.06
|
13,433.99
|
2018-19
|
14,164.47
|
13,462.02
|
2019-20
|
16,987.94
|
16,368.52
|
From table 5, it’s quite clear that from year 2014-2018 revenue was high. Cost of sales were system loss was not included; revenue was higher. But after the installation of prepaid meter cost of sales got higher and revenue reduced. Though from all the years 2019’s revenue is greater but it should be noted that cost had also increased. It is a result of reduced consumption and lesser wastage. Also, all these cannot be said with certainty.