ISLAMABAD:
The Economic Coordination Committee (ECC) is set to again take up in its upcoming meeting on Saturday a proposed plan to shift the burden of Rs49 billion onto gas consumers.
It is a disputed amount that has been collected by the gas distribution companies from consumers after an increase in the unaccounted-for-gas (UFG) ceiling by Ogra.
According to sources, the Ministry of Petroleum and Natural Resources has proposed the same measures to the ECC, which the Oil and Gas Regulatory Authority (Ogra) approved during the previous PPP-led government for bailing out gas utilities with an increase in UFG ceiling from 5% to 7% and injection of Rs49 billion into the companies.
However, the National Accountability Bureau (NAB) has termed the measures illegal and is seeking to recover the money from the utilities, putting the government, which is a major shareholder in the utilities, in a quandary.
In its previous meeting, the ECC had put off decision on shifting the burden of Rs49 billion onto consumers after the Ministry of Finance argued that it should not affect an ongoing investigation by NAB into an Ogra scam.
“How can NAB call the increase in UFG ceiling illegal as Ogra is empowered under the Ogra Ordinance 2002 to take such a decision as a judicial body,” a senior government official commented.
UFG benchmarks were set by the regulator and it could also change them keeping in view the financial position of gas companies, increase in retail consumers and socio-political programme of the government, he said.
“If the huge amount is recovered from the utilities, it will go into the pockets of provinces in shape of gas development surcharge, pushing the companies towards bankruptcy and leading to a halt in gas supply across the country,” he warned.
After receiving legal opinion, the petroleum ministry has again sent a summary to the ECC, calling for approval of some specific measures to improve the financial health of gas utilities.
It proposes that the following should be provisionally allowed as gas sales volumes for UFG benchmarking. (i) Volume pilfered by unregistered consumers but detected and determined by the companies (ii) volume against minimum billing amount charged from domestic consumers (iii) volume consumed in law and order-stricken areas and (iv) impact of change in the bulk-retail ratio on UFG using 2003-04 as the base year.
Published in The Express Tribune, July 17th, 2014.
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Can these morons manage anything? They go on putting consequences of their mismanagement on consumers whether it be electricity or gas or whatever. Mr. Sharif and company: if you can't fix things, just quit and let some competent guys take over.