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ISLAMABAD: Both the gas utilities — the Sui Northern and Sui Southern — have sought a massive raise in gas tariff of Rs30.38 per MMBTU (million British thermal unit) from January 1 to June 30, 2013 in their petitions submitted to the Oil and Gas Regulatory Authority (Ogra).
So much so, both have also placed a demand seeking payment of Rs13 billion from consumers under the head of the gas stolen in the last six months of the current financial year, and they have also demanded permission of recovery of loss from the consumers against 7 percent UFG (unaccounted for gas) during the said period.
It is pertinent to mention that the federal cabinet, which met on October 11 with Prime Minister Raja Pervaiz Ashraf in the chair, has already secretly accorded approval to the summary seeking the shifting of the burden of whopping Rs9 billion on to the poor gas consumers for the gas theft and the inefficiency in recovery of gas bills in some pockets of the country by the Sui Southern and Sui Northern where law and order situation has deteriorated.
However, in their petitions, both the utilities have demanded the increase to 7 percent UFG from the existing 4.5 percent despite the fact that the Lahore High Court (LHC) has rejected the plea of Sui Northern seeking the raise of UFG up to 7 percent. As per the petition submitted with Ogra, a copy of which is available with The News, the Sui Northern has sought the raise in gas tariff by Rs30.38 per unit and Sui Southern Rs10.43 per MMBTU.
The Sui Northern, in its petition, came up with the assertion, saying that it requires the revenue of Rs17.86 billion under the head of theft of gas, technical losses and other expenses.
The petition unfolds that the net operating revenue of the company stands at Rs231.4730 billion whereas the total expenditure hovers around Rs238.3170 billion. The Sui Northern pleaded that it should be allowed to receive Rs11 billion from consumers on its fixed assets valuing Rs62.9540 billion as per 17.50 percent rate of return. The petition is honoured by Ogra, the company will charge Rs17.8620 billion from the consumers during the period from January 1 to June 30, 2013.
The Sui Southern, in its petition, admitted the bitter fact that its losses had increased to 8.75 percent against the target of 8.07 percent set by Ogra. This means that the gas theft and other technical losses are on the increase exposing the inefficiency of the Sui Southern. The company says in its petition that its net operating revenue stands at Rs154.8880 billion and its expenditures are Rs158.5330 billion. It also sought the permission to raise the gas tariff by Rs10.43 per MMBTU to receive Rs3.8490 billion from consumers.Ogra has decided to hold the hearing on Sui Northern’s petition in Lahore on November 22 and in Karachi on November 28 on the petition of Sui Southern.
So much so, both have also placed a demand seeking payment of Rs13 billion from consumers under the head of the gas stolen in the last six months of the current financial year, and they have also demanded permission of recovery of loss from the consumers against 7 percent UFG (unaccounted for gas) during the said period.
It is pertinent to mention that the federal cabinet, which met on October 11 with Prime Minister Raja Pervaiz Ashraf in the chair, has already secretly accorded approval to the summary seeking the shifting of the burden of whopping Rs9 billion on to the poor gas consumers for the gas theft and the inefficiency in recovery of gas bills in some pockets of the country by the Sui Southern and Sui Northern where law and order situation has deteriorated.
However, in their petitions, both the utilities have demanded the increase to 7 percent UFG from the existing 4.5 percent despite the fact that the Lahore High Court (LHC) has rejected the plea of Sui Northern seeking the raise of UFG up to 7 percent. As per the petition submitted with Ogra, a copy of which is available with The News, the Sui Northern has sought the raise in gas tariff by Rs30.38 per unit and Sui Southern Rs10.43 per MMBTU.
The Sui Northern, in its petition, came up with the assertion, saying that it requires the revenue of Rs17.86 billion under the head of theft of gas, technical losses and other expenses.
The petition unfolds that the net operating revenue of the company stands at Rs231.4730 billion whereas the total expenditure hovers around Rs238.3170 billion. The Sui Northern pleaded that it should be allowed to receive Rs11 billion from consumers on its fixed assets valuing Rs62.9540 billion as per 17.50 percent rate of return. The petition is honoured by Ogra, the company will charge Rs17.8620 billion from the consumers during the period from January 1 to June 30, 2013.
The Sui Southern, in its petition, admitted the bitter fact that its losses had increased to 8.75 percent against the target of 8.07 percent set by Ogra. This means that the gas theft and other technical losses are on the increase exposing the inefficiency of the Sui Southern. The company says in its petition that its net operating revenue stands at Rs154.8880 billion and its expenditures are Rs158.5330 billion. It also sought the permission to raise the gas tariff by Rs10.43 per MMBTU to receive Rs3.8490 billion from consumers.Ogra has decided to hold the hearing on Sui Northern’s petition in Lahore on November 22 and in Karachi on November 28 on the petition of Sui Southern.
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