SSGC seeks ministry’s help in tariff determination

Company has not been able to finalise 2012-13 accounts due to delay.


Our Correspondent September 23, 2014

ISLAMABAD:


Sui Southern Gas Company (SSGC) has sought assistance of the Ministry of Petroleum and Natural Resources in determining the company’s revenue requirement and subsequent finalisation of annual accounts in an effort to shield the interest of consumers and shareholders.


In a letter sent to the ministry on September 19, SSGC Managing Director Shoaib Warsi said the company had a good financial credibility, but its inability to finalise annual accounts was causing grave concern and anxiety among financial institutions and banks.

“We would like to inform you that the final revenue requirement of SSGC is determined by Ogra (Oil and Gas Regulatory Authority), which is a statutory requirement under the Ogra Ordinance,” Warsi said.

“SSGC submitted its initial accounts to Ogra by August 15, 2013, however, it has not yet received the final revenue determination for financial year 2012-13.”

The gas transmission and distribution company, therefore, is not in a position to finalise the accounts for consideration of the audit committee and the board and subsequent approval of shareholders in the annual general meeting.

The company has delayed the annual general meeting and got an extension from the Securities and Exchange Commission of Pakistan (SECP) in this regard.

The Karachi Stock Exchange, in a letter dated September 4, urged SSGC to resolve the matter of non-publishing/non-approval of annual accounts on an urgent basis in order to protect and safeguard the interests of shareholders.

According to Warsi, if Ogra does not provide the final tariff determination, the annual accounts for the period ended June 30, 2013 will continue to remain pending, which in turn will affect finalisation of accounts for next year as well and result in the company failing to meet legal requirements for two years. “This matter raises serious concern within and outside the company,” he remarked.

In the light of the situation, the SSGC managing director asked the petroleum ministry to intervene and take up the matter with Ogra for final determination of the revenue requirement. This, he added, would enable the company to finalise the accounts for 2012-13.

Published in The Express Tribune, September 24th, 2014.

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