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KARACHI: The Oil and Gas Regulatory Authority (Ogra) on Tuesday declined to hear KCCI’s point of view on SSGC’s petition pertaining to estimated revenue requirement and abruptly ended proceedings despite protests from the intervener.
Dr Qazi Kamal, representing KCCI, said that the authority acted against Ogra rules without hearing an intervener who had paid the required fee.The KCCI representative said he was boycotting the proceedings because it had refused to hear him.
In a last hearing in November 2011, the company had requested an increase of Rs49.66 per mmbtu to meet the revenue requirement of Rs19.68 billion in financial year 2011-12.
In response, the Ogra had allowed a price increase of Rs5.08 per mmbtu, but later on the advice of federal government, it revised it upwards to Rs22.06 per mmbtu to generate Rs8.74 billion.
The KCCI said that according to rules, gas utilities cannot launch new schemes if they fail to provide gas to existing consumers.
“If Ogra permits gas companies to continue work on new schemes, it would be in violation of rules related to licensees (SNGPL and SSGCL) and inflation-hit consumers will have to face an additional burden,” said Dr Qazi Kamal.
He said that gas utilities have already high gas theft and leakages and any extension in pipelines would lead to increase in leakages.
The KCCI asked the Ogra to explain why reduction of prices did not take place when crude oil prices touched $47 a barrel.
