The Oil and Gas Regulatory Authority (Ogra) has rejected the demand of the Sui Northern Gas Pipelines Limited (SNGPL) to pass on the burden of additional expenditures amounting to Rs 609.40 million incurred during 2003-04 to consumers. The Ogra, giving its verdict on Friday rejecting the SNGPL petition, however, allowed it to increase gas rate by 14 paisa per unit (MMTU) for 2003-04 with the condition that the increase will not be passed on to the consumers.
The increase of 14 paisa per unit will be adjusted by the SNGPL from Rs 50.80 million collected under the head of gas development surcharge.
The SNGPL demanded to increase the price of gas by 1.43 paisa per unit, but it was rejected by the Ogra.
According to the Ogra decision, the SNGPL claims amounting to Rs 50.80 million have been accepted. The Ogra has also reduced the operating expenses by Rs 266.29 million, which included reduction of Rs 77.54 million on account of Unaccounted For Gas (UFG) in excess of 6.5 percent, reduction of Rs 188.75 million in transmission and distribution expenses owing to various disallowance's, consequential reduction in other charges including Worker's Profit Participation Fund (WPPF) by Rs 25.31 million.
The decision also indicated that the shortfall in revenue requirement works out to Rs 58.19 million as against Rs 609.381 million claimed by the SNGPL.
The Ogra, in its decision, determined the total revenue requirement for 2003-04 at Rs 66,069 million as against Rs 66,464 million claimed by the SNGPL, thereby, reducing it by Rs 395.5 million.
The Ogra also disallowed donations amounting to Rs 3.93 million.
The Ogra has completed the review of performance of both gas companies, SNGPL and SSGPL, for the year 2003-04 while preliminary review of financial year 2004-05 has also be completed.
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