United Group has evaded over Tk 728 crore in gas bills at Dhaka and Chattogram Export Processing Zones (EPZs) since 2018.
The group paid gas bills at independent power producer (IPP) rates despite using gas for captive power generation, allowing it to earn significant profits, officials said.
Currently, the natural gas tariff for captive power is Tk 31.50, whereas the IPP tariff is only Tk 14.
Despite repeated attempts by Titas Gas Transmission and Distribution Company and Karnaphuli Gas Distribution Company, the company has refused to pay the dues from 2018 to 2024.
The Energy and Mineral Resources Division has ordered the collection of bills at captive rates following approval from Chief Adviser Prof Muhammad Yunus, official sources confirmed.
Due to the non-payment, Titas Gas and Karnaphuli Gas have faced financial constraints, hindering development projects, the managing directors of both companies told Just Energy News.
“I have repeatedly asked them to clear their outstanding bills, but they have yet to pay despite multiple attempts,” said Titas Gas Managing Director Shahnewaz Parvez.
He added that development activities and LNG bill payments have been delayed due to United Group’s unpaid bills.
According to Titas Gas, United Group’s outstanding dues exceed Tk 482 crore.
Karnaphuli Gas Managing Director Engr Md Salahuddin said the company had made several attempts to recover the dues but failed. He confirmed that United Group owes Tk 246 crore.
A gas distribution company official noted that they are struggling to pay over Tk 2,000 crore in LNG bills due to outstanding payments from various companies, including United Group.
The Energy and Mineral Resources Division has cancelled the decision to supply gas to United Power Generation and Distribution Company Limited (UPGD) at IPP rates and directed that gas bills be charged and collected at captive rates.
According to the order, supplying gas at IPP rates to UPGD’s power plants in Dhaka and Chattogram EPZs contradicts the Gas Act-2010 and court orders. Consequently, the decision under serial 11.0 (ka) from the 15 October 2023 meeting at the Ministry of Power, Energy, and Mineral Resources has been revoked.
Titas Gas and Karnaphuli Gas have now been instructed to collect UPGD’s gas bills at captive rates, the order stated.
In a separate directive, the Power Division announced that a committee was formed on 13 November 2024 to draft a policy on extending expiring IPP contracts. The committee reviewed existing contracts, tariffs, and production costs, identifying other power plants under the Power Division.
The committee recommended setting gas prices for UPGD’s Dhaka and Chattogram EPZ plants based on the “Policy for Increasing Private Participation in the Power Sector, 2006” and S.R.O. No. 105-Law/2024, issued on 29 April 2024.
Prof. M. Tamim said that the United Group used gas for the captive plants at EPZs illegally. We have proposed taking necessary action against them, he said who is also a member of the committee.
In response, the Ministry of Power, Energy, and Mineral Resources’ adviser directed that gas supplied to BEPZA from these plants be billed at captive rates, while electricity supplied to the national grid be charged at IPP rates.
“Since the previous order was approved by the then Prime Minister, summarize and submit,” the directive stated.
Approval for determining gas prices for these power plants was previously obtained from the Prime Minister through the Energy and Mineral Resources Division. Further consent from the current Prime Minister must now be secured to proceed.
The Just Energy News reached out to United Group for comments on the unpaid gas bills, but the company did not respond.
