Pipeline tariffs for shippers: Ogra reschedules public hearing date of SNGPL petition

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has rescheduled the public hearing on the Sui Northern Gas Company Limited (SNGPL) petition for determination of transportation tariff to be used for issuing invoices to the shippers for using pipeline of the SNGPL for transportation of their gas under third-party access (TPA) regime for financial year 2020-2021.

The regulator has rescheduled the date to December 10, 2020. Previously, the Ogra announced the date of public hearing on December 3, 2020. The gas company data in respect of transmission and distribution costs, depreciation cost, return on assets, and variable operating costs, has been taken from the SNGPL's petition filed with the Ogra for motion for review against the authority's determination of estimated revenue requirement (ERR) for financial year 2020-2021.

In petition stated, since the denominator (total capacity) used in the worked example contradicts with the principle as envisaged in schedule-I of the TPA Rules, which is the main document, therefore, the working of the tariff in the petition follows the principle of actual throughput. The figures used in the instant working are estimated; however, the same will be actualised once the SNGPL's actual audited accounts for the relevant years are available. Input volumes of indigenous and RLNG are based on motion for review against determination estimated revenue requirement for financial year 2020-2021.

Total UFG for indigenous has been taken as 10.19 percent for indigenous, and 3.43 percent for RLNG, in line with the motion for review against the DERR financial year 2020-2021.

The UFG in transmission has been assumed at the level of one percent and 0.38 percent for indigenous and RLNG respectively as determined by the Ogra in the DERR financial year 2018-2019.

The UFG for RLNG transmission has been computed on the input volume net off GIC at the SNGPL network in line with the computation of cost of supply of the RLNG. The petitioner asked for Rs30.7 billion for net operating cost in motion for review against DERR financial year 2020-2021 for transmission and distribution cost.

Copyright Business Recorder, 2020