Gas pre-paid metering and its benefit analysis in titas gas franchise area

Abstract

Titas Gas Transmissiun & Distribulion Co. LId., a company 01' l'elrobungla wllieh is the largest di~lribulion imd markeli~g company of Bangladesh (72% market share) distributes and market~ natural ga, in Dhaka City and 21 regional oftiee, outside Dbuka City. 7 (seven) Sale~ "nd Re\'cnlle zone olliec" exist in Ohaka City and there are 21 (twenty one) region;ll Sale~ olliees out~iJe Dhaka City. eaeh having morc or le~s 50,000 Domestic Gas Customerb. Currcntly there mc ne"rly 8,00,000 domestic consumcrs in the abov~ ;lreas of Dbaka City and the tol.<llnumber of Jomestic consumers in the Tila~ Franchise area is 10,97,478 (up to December. 2006). Thcse consuillcrs are paying bills on monlhly nat r;lte lariiT under" Self Billing Process" TGTDCL inlroduced ~OIllCPre-paid Gas metcrs in Banani are" of Dhaka City as a pilot project. Under thi~ projcct 1000 Pre-paid Gas melers have been procured, instulleJ and commissioned in thc cu>;tomcl' premiscs, One of the objeetivcs of this projcel wOl'k i~ to undertakc financial analysis of using Pre-paid Gas meters. financial paramelers such as nct prcscnt valuc (NI'V), bcncfit co,t ratio (IlCR), internal ratc of rcturn (/RR), Pay b"ck pcriod and di,coull1ed pay back period and nveruge accounting return (AAR) havc been calculated oll (he ba,is of 20 year project life, The analysis is firstly done for 10,000 dome,tic etlS(OIncr~.Then it is sc"lcd up to ,,11all thc domestic eustomcrs in TilaS Franchise area. The results of fiLlancial analysis infcl' financial feasibility of the projcct. Sensibility an;llysis is also made by varying the pammeters such as Gas price, investmcnt cost, ga~ consumptions through the proposed meters which ore thc guiding fadors of financbl indicalors (NPV,IRR, BeR. Pay bad. period, discounted pay back period and AAR). Scnsilivity is madc eonsidcnng thc worsl condition, the besl condition and intcrmediate condition. Le;s variation ]11 Jinancinl parameters for different condilions indiente that thc projcct is le~s sensilive (Ic~, risky), Thc amoanl of waste gas for dome~lic conSllmer~ has ;1150becll caleulilled li,r not using thc gu.' mctering sys(cm. Thc amount of waste g;l" for ;Ill thc domestic cUSlOlllersin Titas Franchisc urea ure calculated a~ Tk, 30.73 crorc all~ually.