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SNGPL faces public fury over gas price

By Our Staff Reporter 2014-05-13
LAHORE: The Oil and Gas Regulatory Authority`s public hearing over increase in gas tariff faced a massive criticism from the people who attended the event at a local hotel on Monday.

`Positive efforts, especially in theft control on the part of gas utility must be appreciated in parallel to the criticism, Ogra Chairman Saeed Ahmed Khan said while presiding over the hearing amid criticism unleashed against the Sui Northern Gas Pipelines Limited (SNGPL) management by a public intervener.

According to the SNGPL petition, presented by its Chief Financial Officer, Uzma Adil Khan, on estimated revenue requirement for the financial 2014-15, the company seeks Rs123.08 per MMBTU increase in gas price.

The interveners were of the view that since the company had no viable plan to stop gas theft or leakage, it should improve the system rather than imposing increase of gas price on the consumers.

`When they say there is no gas in the supplies and the sale of gas is declining, how their operating cost is going up,` one of the participants objected while opposing the proposal.

Similarly, some other complainants criticized the SNGPL for doing nothing but to plan increase in the gas price always.Responding to the interveners, SNGPL Managing Director Arif Hameed claimed the company was operating with a chalked-out plan for controlling percentage of unaccounted for gas (UFG), a term used for gas theft/leakage. According to him, the company`s plan was also duly approved by Ogra. Regarding pipelines construction, he said, the company couldn`t embark on any expansion plan without approval of the regulator.

During the hearing, both SNGPL MD Arif Hameed and Counsel Mehmood Mirza objected to interveners through the Ogra chairman, saying that personal attacks were not relevant to the petition.

`Please stay relevant and avoid personal attacks on any of the members of the SNGPL management and refrain from such discussions, the chairman said.

Ogra had earlier held a similar public hearing on the SNGPL petition in Peshawar on May 8 where the independent interveners had objected to the demand of the company.

According to the Ogra spokesperson, the authority had heard both the parties, petitioners and interveners in Lahore as well as in Peshawar and reserved its decision. The determination would be made public as soon as the authority reached its decision after thorough examination and deliberations on the facts of the matter under the law.