Inquiry panel puts blame of gas overbilling on utilities
Report shows 30% users overcharged; PM directs authorities to reimburse consumers
A gas cooker. PHOTO: REUTERS
ISLAMABAD:
A committee probing into the phenomenon of inflated gas bills during the cold season has held gas utilities responsible for overcharging from 30 per cent consumers.
Sources told The Express Tribune that the committee analysed data of 10,000 gas consumers and found that out of these users, 30 per cent had been overcharged by applying higher gas factor during winters.
The committee submitted its report to Prime Minister Imran Khan, who in a high level meeting directed the gas companies on Tuesday to reimburse the additional money received from these gas consumers.
The PM also directed authorities to hold inquiry against the responsible officials of gas companies involved in overbilling. The committee was also directed to continue its inquiry to bring out all details.
Officials said the gas companies had manipulated application of high pressure gas factor.
The high pressure gas factor is applied to industrial users but this was being applied to domestic gas consumers as well, an official said. The Oil and Gas Regulatory Authority (Ogra) had apparently also allowed gas utilities to apply the factor to domestic consumers which results in inflated gas bills.
Another cause of increase in gas bills were the new gas slabs, introduced by the Pakistan Tehreek-e-Insaf (PTI) government to earn Rs150 billion for the gas utilities operating on higher losses to meet their revenue requirements.
According to the new scheme, the charges more than doubled at every new slab. The gas consumers utilising gas of 3 cubic meters (3Hm3) were to pay Rs3,016. However, this bill went up to Rs8,840 on consuming gas of 3.1 Hm3, just with an increased consumption of 0.1HM3. Similarly, the price of consuming 4M3 gas was Rs11,406 which jumped to Rs21,884 for the consumers who used 4.1 HM3 gas.
Revision in rates of gas for different slabs
The sources said the Petroleum Division was to submit proposals to the Cabinet Committee on Energy in its meeting held on Tuesday for revision in rates of gas at different slabs but the issue could not be discussed. They said the government is likely to adopt the model used in electricity billing.
They said the consumers using gas would be charged different rate only for the gas used over and above the previous slab. If they enter the next slab, the consumers would not be charged all units of gas falling in next slab. The new proposal would be tabled in the next meeting of cabinet committee on energy.
A committee probing into the phenomenon of inflated gas bills during the cold season has held gas utilities responsible for overcharging from 30 per cent consumers.
Sources told The Express Tribune that the committee analysed data of 10,000 gas consumers and found that out of these users, 30 per cent had been overcharged by applying higher gas factor during winters.
The committee submitted its report to Prime Minister Imran Khan, who in a high level meeting directed the gas companies on Tuesday to reimburse the additional money received from these gas consumers.
The PM also directed authorities to hold inquiry against the responsible officials of gas companies involved in overbilling. The committee was also directed to continue its inquiry to bring out all details.
Officials said the gas companies had manipulated application of high pressure gas factor.
The high pressure gas factor is applied to industrial users but this was being applied to domestic gas consumers as well, an official said. The Oil and Gas Regulatory Authority (Ogra) had apparently also allowed gas utilities to apply the factor to domestic consumers which results in inflated gas bills.
Another cause of increase in gas bills were the new gas slabs, introduced by the Pakistan Tehreek-e-Insaf (PTI) government to earn Rs150 billion for the gas utilities operating on higher losses to meet their revenue requirements.
According to the new scheme, the charges more than doubled at every new slab. The gas consumers utilising gas of 3 cubic meters (3Hm3) were to pay Rs3,016. However, this bill went up to Rs8,840 on consuming gas of 3.1 Hm3, just with an increased consumption of 0.1HM3. Similarly, the price of consuming 4M3 gas was Rs11,406 which jumped to Rs21,884 for the consumers who used 4.1 HM3 gas.
Revision in rates of gas for different slabs
The sources said the Petroleum Division was to submit proposals to the Cabinet Committee on Energy in its meeting held on Tuesday for revision in rates of gas at different slabs but the issue could not be discussed. They said the government is likely to adopt the model used in electricity billing.
They said the consumers using gas would be charged different rate only for the gas used over and above the previous slab. If they enter the next slab, the consumers would not be charged all units of gas falling in next slab. The new proposal would be tabled in the next meeting of cabinet committee on energy.