Biz leaders for action to promote energy efficiency, combat illegal gas use

Business leaders across various industries have recommended that authorities take decisive measures to promote energy efficiency and crack down on the illegal use of gas in order to optimise the utilisation of valuable gas resources and sustain economic growth.

During a stakeholder's dialogue named 'Energy Strategy: Towards a Predictable Future,' organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital on Saturday, they also emphasised the need for a predictable pricing policy.

They argued that such a policy would enable the private sector to plan their business activities effectively.

Barrister Md Sameer Sattar, president of the DCCI, moderated the dialogue where Nasrul Hamid, state minister for power, energy, and mineral resources was present as the chief guest.

Notably, over the past few years, various industries, including readymade garments and ceramics, have been grappling with gas shortages, hampering their ability to reach their full production potential. Many factories are operating at partial capacity, resulting in increased production costs and reduced business revenue. Additionally, a significant number of illegal gas connections are exacerbating the situation.

Md Shafiul Islam Mohiuddin MP, former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), urged the government to immediately disconnect all illegal gas connections.

He stated, "We do not support or favour those who unlawfully use valuable gas resources. We stand alongside the government in taking strict actions against them."

Highlighting the importance of coordinated and consistent policies, he further stated that to ensure uninterrupted power supply, industries are being encouraged to relocate to economic zones. However, the current state of economic zones does not make them a viable option at this time.

He emphasised the need for good governance and efficient energy management to promote sustainability.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), echoed Shafiul Islam's concerns and suggested that if the government could eliminate illegal connections, legally operating industries would have access to the additional gas supply required for production.

He also urged authorities to reduce taxes and duties on the import of solar equipment, stating, "As we transition to green and energy-efficient factories, it is essential to eliminate unnecessary taxes and VAT on solar equipment. At a time when we are struggling to obtain uninterrupted electricity, such taxes hinder our progress."

The revenue from exports has declined to $38 billion, which reached $48 billion at some point, largely due to the increased fuel prices.

Faruque Hassan emphasised the necessity of providing support to export-oriented industries to maintain their competitiveness in the global market.

He warned that restricted revenue from exports would have a direct impact on the country's economic growth.

State Minister Nasrul Hamid said the government is committed to ensuring uninterrupted gas supply to all industries as the country strives to become a trillion-dollar economy by 2040.

He acknowledged that the country lacked a needs-based assessment of gas usage, resulting in haphazard connections to households and businesses whenever new gas fields were discovered. This disorganised approach to industrialisation has posed significant challenges to maintaining uninterrupted gas supply.

However, the minister assured that in the future, separate gas and electricity connections would be provided to industries, addressing this issue.

Nasrul Hamid urged industry owners to consider relocating their businesses to Economic Zones to avail of uninterrupted quality gas supply.

Regarding the pricing of power and energy, the minister informed attendees that gas prices would be adjusted based on international market rates, as the government plans to reduce subsidies, particularly in this sector.

He emphasised the government's determination to crack down on unlawful gas users, asserting a policy of zero tolerance. Furthermore, Hamid urged industry owners to adopt energy-efficient practices.

During the panel discussion, Faisal Karim Khan, president of the Bangladesh Independent Power Producers Association, highlighted efficiency as the key solution to the energy crisis.

He emphasised the importance of supplying gas to the most efficient plants to achieve demand-side efficiency.

He also suggested unifying taxes on imported fuels to ensure that electricity dispatch aligns with the real marginal cost, thereby enhancing supply-side efficiency.

Naser Ezaz Bijoy, president of FICCI, expressed support for the government's decision to implement market-based pricing, as it improves predictability and allows entrepreneurs to manage price risks effectively.

However, Bijoy called for transparent consultation with the private sector in determining pricing mechanisms and emphasised the need for a roadmap to address production competitiveness, particularly for exports, to boost foreign exchange earnings.

Ahsan Khan Chowdhury, chairman and CEO of PRAN RFL Group, stressed the importance of efficiency for both industrialists and service providers.

He urged them to improve their efficiency, stating that the challenges they face are often a result of inefficiencies in the system.

He also emphasised the significance of long-term planning and a predictable pricing policy.

Other speakers at the dialogue included Dr Badrul Imam, honorary professor at Dhaka University; Md Habib Ullah Dawn, vice president of FBCCI; and Mollah Amzad Hossain, editor of Power and Energy Magazine.