Titas Gas to begin smart prepaid meter installations from 2026

Titas Gas Transmission and Distribution PLC will begin installing smart prepaid gas meters in 2026, having already appointed one project management consultant (PMC) while the selection of a second is in progress.

"We're hopeful that we can start the implementation of the smart prepaid meter project by the second half of 2026," said Shahnewaj Parvez, Managing Director of Titas Gas, the largest state-owned gas distribution entity with a 55% market share and 2.878 million consumers.

Another PMC will be appointed soon, as the selection process is underway for the ADB-financed project.

Meanwhile, Development & Technical Consultant Limited (DTCL), a local firm, has been awarded the consultancy contract under the WB-financed project.

Titas Gas has so far installed 420,000 prepaid meters in its command areas, primarily covering Dhaka, Narayanganj, Gazipur and Narsingdi, since launching the initiative more than a decade ago.

These prepaid meters were installed with financial support from the Japanese donor agency JICA.

"This time, however, the new project will be financed by the Asian Development Bank and the World Bank, and all meters will be smart prepaid ones. The previous ones were only prepaid, not smart prepaid," said the Titas Gas MD.

He explained the distinction between prepaid and smart prepaid meters, noting that while users of prepaid meters must visit vendor points to recharge, smart prepaid meters allow users to recharge from any location using a smartphone. "This is the biggest advantage of the smart prepaid meter," he added.

Under the new project, 1.75 million smart prepaid meters will be installed in Titas-controlled areas.

The ADB will finance 650,000 meters, while the WB will fund the remaining 1.1 million meters.

Officials said two separate agreements were signed with the World Bank and the ADB about 18 months ago for the installation of the 1.75 million smart prepaid meters.

Explaining the significance of the PMC, the Titas Gas MD emphasised its critical role in project implementation, including planning, designing and overseeing technical aspects.

"The main technical aspects remain in the hands of the PMC. Normally, one or two companies are appointed as PMC," he told UNB.

The PMC is also responsible for monitoring and supervising the tendering process and implementation works. Due to fraud practices in the tendering process, one selection was canceled, and a re-tendering process was initiated to appoint the second consultant, he noted.

Official sources confirmed that in November 2023, Titas Gas signed two loan agreements for the installation of 1.75 million smart prepaid meters under two projects.

On November 23, 2023, Titas signed a loan agreement with the World Bank for the installation of 1.1 million smart prepaid meters under the Gas Sector Efficiency and Carbon Abatement Project.

On November 28, 2023, the company signed another agreement with the ADB for the installation of 650,000 smart prepaid meters under the Smart Metering Energy Efficiency Improvement Project.

The government initiated the smart prepaid meter project for Titas Gas to reduce excessive system losses to a reasonable level.

As the oldest and largest gas distribution company in terms of operational area and sales volume, Titas Gas has been struggling with a 7% system loss.

Company officials estimate that Titas incurs losses of Tk 150-180 crore per month due to system loss. If checked, the company could save Tk 1,800-2,160 crore annually.

Titas Gas has already installed about 350,000 prepaid gas meters for household consumers in Dhaka with financial support from JICA. These meters are primarily in Gulshan, Banani, Mohammadpur, Paltan, Ramna, New Market, Khilgaon and Segunbagicha.

Under the new project, WB-financed smart prepaid meters will be installed in Dhaka South and Narayanganj, while ADB-financed meters will be installed in Dhaka North and Gazipur.

Titas Gas currently serves over 2.878 million consumers, including 2.853 million households, 12,078 commercial consumers, 5,429 industrial consumers, 1,755 captive power plants, and 396 CNG stations.

According to official statistics, Titas Gas holds 55% of the gas market share, while the other five gas distribution companies account for 45%.

Its vast operational area covers Dhaka, Manikganj, Gazipur, Narayanganj, Munshiganj, Narsingdi and Mymensingh.

Titas annually sells approximately 14,459.41 million cubic meters (MMCM) of gas (2021-23 fiscal years), generating a revenue of Tk26,387.12 crore.