Ogra allows SNGPL recover loss from 'honest' users

Gas utility to collect 2.6 per cent unaccounted for gas (UFG) from 2012 to 2017.

ISLAMABAD: In a controversial  move, the Oil and Gas Regulatory Authority (Ogra) has allowed a state-run gas utility –the Sui Northern Gas Pipelines (SNGPL) – to recover billions of rupees from ‘honest’ consumers on account of gas theft during the last five years with retrospective effect.

Earlier, Ogra had disallowed the gas utilities to recover the gas theft loss from the honest consumer paying regular bills.  However, in a review motion, Ogra has allowed the gas company to recover additional 2.6 per cent unaccounted for gas (UFG) from 2012 to 2017.

The regulator during the Pakistan Peoples Party’s last government had allowed 7 per cent UFG to gas companies, whipping up a controversy. And now it has allowed 2.6 per cent UFG to the gas utility.

The Auditor General of Pakistan had termed appointment of current Orga Chairman Uzma Adil – who was also a former employee of the SNGPL – illegal saying she had been favouring the SNGPL in her decisions.  In this new controversial decision, the gas company has once again been favoured.

In a statement, Ogra said the authority with majority approved in principle that variable allowance of up to 2.6 per cent on account of claimed and allowed by the regulator should be staggered in proceeding five years to be recovered from the consumers so as not to burden the consumers in one go.

It also allowed the the Sui Southern Gas Company (SSGC) to recover Rs779 million late payment surcharge from the gas consumers.

However, Ogra member finance Noor Ul Haque wrote a dissenting note on this decision. “This loss was due to inefficiencies of the gas companies which could not be passed on to the gas consumers,” he said.