OGRA firm to protect stakeholders' rights

Oil and Gas Regulatory Authority (OGRA) is determined to protect the rights of all stakeholders in accordance with the law and in the best interest of public, says Tauqir Sadiq, Chairman OGRA who was chairing a public hearing organised by OGRA at Lahore on a petition by Sui Northern Gas Pipelines Limited (SNGPL), says a press release received here on Wednesday.
The petition was to determine the SNGPL's estimated revenue requirement/prescribed prices for FY 2011-12. The hearing was attended by representatives of various associations, members of press and stakeholders like consumers, public, management of the SNGPL and other interveners.
Managing Director, SNGPL and his team made a detailed presentation and gave the reasons for their estimated revenue requirement/prescribed prices. They also responded to a number of questions raised by participants/interveners. SNGPL filed its petition on December 3, 2010 under section 8(1) of OGRA Ordinance 2002 and Rule-4(2) of Natural Gas Tariff Rules 2002 to determine its estimated revenue requirement for FY 2011-12 and requested for increase of Rs 28.03 / MMBTU in its average prescribed price w.e.f 1st July 2011, due to increase in the projected cost of gas in FY 2011-12 consequent upon expected Crude Oil and HSFO average of FOB prices at $84.76 per barrel and $495.57 per metric ton, respectively and Rs 89.50 $/Rs parity.
The petitioner subsequently amended the petition on 1st March, 2011 and sought an increase of Rs 47.98 per MMBTU in its average prescribed price w.e.f 1st July 2011. The Public Notic w.r.t the amended petition published in the newspapers on March 10, 2011. The amended petition was also sent to the interveners. The Authority in order to provide equal opportunity to all the stakeholders decided to hold a public hearing on April 19, 2011 at Lahore and accordingly issued notices to all the interested and affected persons.
The participants opposed the petition saying that any increase in gas prices shall have adverse effect on gas consumers who are already striving very hard to survive due to ongoing high inflation. It was desired that cross-subsidy mechanism should be abolished and the value addition sectors should be preferred for supply of gas.
The participants demanded that GoP should develop the LPG and LNG sectors on war footing basis to bridge the increasing demand-supply gap so that the gas loadshedding could be done away with. The participants raised strong reservations on the high UFG of SNGPL and demanded that no relief in UFG benchmark be given on account of gas consumers.
The gas theft culture prevailing in the country, in connivance with the SNGPL employees, was criticised and it was highlighted that all the consumers and industrial associations are willing to work with SNGPL to eradicate the prevailing theft. It was also stressed that petitioner must endeavour to reduce its number of employees in view of the declining gas supplies.
A special desk for facilitation of general public was set-up by OGRA, which guided a large number of consumers regarding complaint redressal mechanism. Keen interest was shown by the participants in this regard. Chairman, OGRA said that it was the duty of the Authority to balance the divergent interests of utility companies and consumers. The Authority will scrutinise all costs with the help of a team of professional engineers, financial and legal experts. He said that OGRA has provided opportunity to all the stakeholders in the hearing and thanked for their whole-hearted participation in the proceedings and said that tangible suggestions will be considered, while deciding the petition of SNGPL.-PR