Sui Southern Gas Company (SSGC) Limited has filed a petition before Oil and Gas Regulatory Authority (OGRA) under Section 8(I) of the OGRA Ordinance 2002 for determination of its estimated revenue requirement (ERR) prescribed prices for the financial year 2018-19. The petitioner has asked the authority to approve a price increase of Rs 109.03 per MMBTU with effect from July 1 in its tariff for the financial year 2018-19.
The OGRA has asked consumers to furnish their comments on the petition. The OGRA has also decided to hold public hearings in Karachi on May 14 and Quetta on May 16. The ERR for financial year 2018-19 has been worked out requesting an increase of Rs 39.030 billion (Rs 109.03 per MMBTU in SSGCL prescribed price effective from July 2018) in indigenous gas business and Rs 10.5 billion are required in RLNG business which include Rs 10,251 for transportation business and Rs 254 million for distribution of RLNG to SSGCL customers.
In line with the Singh High Court (SHC) decision on Nov 25, 2016 dismissing all the stay orders granted to the company from financial year 2010-11 to financial year 2015-16, revenue from meter manufacturing profit, late payment surcharge, sale of condensate, LPG and NGL are treated as operating incomes in the instant petition.
However, an appeal in the Supreme Court has been filed against the SHC decision and in case of favourable decision; the company will amend the instant petition in the light of the decision. The company is also pursuing the ECC for issuance of policy guidelines to the authority. The UFG is projected at 6.68 percent versus benchmark of 6.30 percent.
Earlier two public hearings were also held in Lahore and Peshawar against Sui Northern Gas Pipelines Limited (SNGPL) petition with OGRA for determination of ERR for financial year 2018-19. The SNGPL had filed an amended petition on April 30, 2018 and requested the authority to allow an average increase of Rs 356.89 MMBTU in its normal business of natural gas operation and Rs 79.51 per MMBTU in LNG business with effect from July 1, 2018 for financial year 2018-19 as ERR.
According to an official of OGRA, two separate public hearings held in provincial capitals of Khyber Pakhtunkhwa and Punjab. A public hearing was held in Peshawar on May 7 and another public hearing was held in Lahore on May 8. Oil and Gas Regulatory Authority determined estimated revenue of Rs 415 billion against the demand of Rs 486 billion by two gas utilities (SNGPL and SSGC) during the financial year 2015-16, stated an annual report titled 'Conduct of OGRA Affairs, 2015-16.