LAHORE: The Oil and Gas Regulatory Authority (Ogra) has reprimanded the Sui Northern Gas Pipelines Limited (SNGPL) for claiming millions of rupees in the head of “others” (miscellaneous), including Rs200 million sought on the basis of gas blown off due to sabotage activities.
“The authority disallows Rs200 million claimed by the petitioner (SNGPL) against the cost of gas blown off due to sabotage activities as the same is covered by under the UFG—Unaccounted for Gas (technical & commercial line losses),” reads a recent decision of the Ogra on the petition of the SNGPL on Estimated Revenue Requirement for the ongoing fiscal year (2021-22).
According to Ogra (regulator of the gas utility companies — SNGPL and SSGC), the petitioner projected Rs516 million in the head of “Others” for the year 2021-22, thereby estimating a 155 percent increase as compared to the last year’s RERR (2020-21).
It mentioned that the petitioner under the subhead “construction equipment operating cost” has projected Rs160 million. The petitioner further submitted that the increase has been envisaged mainly due to a significant increase in the POL prices as well as impact of higher cost of repair & maintenance due to Pak rupee devaluation.
“The authority observes that projecting 43 per cent increase under the head of construction equipment operating cost is beyond any reasonable justification. The authority directs the petitioner to control the expenditure within tolerable limit and actively monitor expense in this head,” the verdict reveals.
The Ogra also expressed anger over the expenses projected under the board meeting and directors expense. It quoted the petitioner as pleading that the directors’ remuneration packages shall encourage value creation within the company successfully.
The authority noted with grave concern that despite its directions, the petitioner is inclined to exorbitant projection under this head which was a matter of serious concern. In view of the same, the authority allows 50 percent of the claimed amount of Rs61 million under this head.
Published in Dawn, September 10th, 2021
