ISLAMABAD: The federal government in an apparent bid to benefit influential shareholders of Sui Southern Gas Company Limited (SSGCL) has resolved that SSGCL will have to pay back Rs18 billion to gas consumers in Sindh and Balochistan in five years.
Well-informed sources disclosed to Pakistan Today that although the SSGCL had over-charged its consumers in Sindh and Balochistan with a total of Rs36 billion in the past, the SSGCL will now pay back Rs18 billion to its consumers on the orders of federal government during the next five years as the gas utility (SSGCL) has already paid Rs18 billion to its consumers on the order of Oil and Gas Regulatory Authority (OGRA) in a single year. However, instead of instantly paying back the over charged amount to the consumers by SSGCL, the government has ordered to clear the amount in five long years, said sources.
The sources added that the government has allowed retaining the remaining amount of Rs18 billion in five years instead of immediate payments to the consumers on certain grounds. They said SSGCL is to pay back Rs18 billion in five years because of reasons such as poor financial conditions of SSGCL, possible dent on liquidity, and also the matter that banks may decline to give loans to SSGCL
The sources also told that a summary was moved through the energy ministry asking the government to allow payments of the remaining Rs18 bn out of 36 bn to gas consumers of SSGCL in five years. And, government granted approval in this regard. They said initially OGRA has expressed reservations on the decision of federal government but allegedly preferred to keep silence on a matter of public interest apparently to not affect the operation of SSGCL.
Sources which shared the details of SSGCL’s dilemma, said that influential shareholders of SSGCL had approached the Sindh High Court (SHC) and obtained a stay order over a decision of the OGRA regarding the ratio of gas losses and theft it (OGRA) allowed the gas utilities to charge the consumers. They said that the Oil and Gas Regulatory Authority set ‘unaccounted for gas’ (UfG) bench mark at 4.5 per cent. And, influential shareholders approached SHC and pleaded that the previous UfG ratio should be maintained. The matter remained pending with the SHC for five years and then the honourable court made a judgment in the favour of public/consumers of SSGCL. And, SSGCL was ordered to pay back Rs36 billion to the consumers.
It is worth mentioning that SSGCL has not only over charged the consumers for five years as per the previous UFG benchmark but it has also allegedly been found sending inflated bills to its customers in the name of Passing Unregistered Gas (PUG) during the last year. SSGC imposed the additional PUG levy without informing customers or serving any notice. The PUG levy was used to improve the company’s overall financial health.
