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ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) Wednesday said itwas ending years’ old controversy and unnecessary prolonged litigation withthe Sui gas companies, allowing them maximums of their claims against linelosses viz-a-viz the UFG benchmark of 2.6 percent.
The Sui Southern Gas Company (SSGC) had claimed a maximum of 2.44% UFGlosses and OGRA had already allowed 1.57% in the FY 2012-13 to FY 2016-17.
A press release issued by OGRA here stated that 0.87% was further allowedto the SSGC and now (variable allowance) capped to 2.44%.
The financial impact of this shall not be passed on to the consumers.
About the Sui Northern Gas Pipelines Ltd (SNGPL), OGRA said it had claimed3.29 % for the same years against which it had been allowed 2.49% and nowonly 0.11% was being given to it.
However, OGRA limited their claims to a maximum of 2.6% and the financialimpact of which would be staggered in the next five financial years, whichamounted to an increase of less than 50 paisa’s per MMBTU.
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“This decision shall end the constant litigation on this account and lay torest the continuous friction between the Sui companies and the regulator.
The regulator will also be cognizant of the fact that it is also bound bycertain laws and cannot take arbitrary decisions in the name of the bestinterest of the consumers, as had this decision not been taken, the equityof SSGC would have been wiped out and it would become simply a burden onthe national exchequer.
It is up to the Sui companies to improve their performances and becomesustainable in future as they cannot expect to be bailed out by the FederalGovernment always,” OGRA said.
The Sui gas companies needed to control their UFG (unaccounted for gas)losses, which were simply not possible without internal collusion, it added.
