KARACHI, Jan 7: A large number of the consumers of the Sui Southern Gas Company will pay more under the recently-introduced heating value-based billing system.

Speaking at a press conference at the gas company’s headquarters on Monday, the SSGC managing director, Mukhtar Ahmed, disclosed that those consumers who were getting natural gas whose heating value was more than 950 British Thermal Units would pay more than what they had been paying previously.

By the same token, he added, that those consumers who were getting natural gas whose heating value was less than 950 British Thermal Units would pay less than what they had been paying previously.

He explained that since March 2000 the company had been receiving gas from the Zamzama field whose heating value — which was also referred to as calorific value in technical parlance — was less than the heating value of gas from the Sui field. As a result, the average heating value of the gas mix had lowered, eliciting squeals of protest from consumers, especially the industrial ones, who complained that their monthly bills had gone up.

According to a SSGC presentation report, the calorific value of the Zamzama gas field is 808 British Thermal Units, and that of the Sui gas field is 984 British Thermal Units.

The SSGC managing director said that the government had taken a decision, effective from Jan 1, that gas prices would be based on the heating value and not on the volume of the gas supplied to consumers.

Much to the consternation of arithmetic-scared reporters, he presented a formula with which the volume of gas could be converted into its heating value, measured in Million British Thermal Units.

He insisted that the heating value-based billing system was equitable, adding that the government would not earn more.

Referring to the accounts receivables of the SSGC, Mr Ahmed said: “Unfortunately, the gas company does not have a happy record of cash flow from the Karachi Electric Supply Corporation and the Water and Power Development Authority.”

At present, he added, the KESC had to pay the outstanding dues of Rs1.3 billion and Wapda had to pay the outstanding dues of Rs2.9 billion.

“Such large account receivables are not sustainable for a company like ours,” said the SSGC managing director.

It may be recalled that when on the 91st annual general meeting of the KESC on Dec 29, a shareholder drew the attention of the KESC managing director towards the Rs1.3 billion outstanding dues that the power utility had to pay to the SSGC, the KESC managing director chose to be economical with the truth. He replied: “The corporation has paid all the gas bills to the SSGC.”