Technology transfer, license deal between SSGC, Itron Inc: CCP grants time bound approval to exemption application

ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted a time bound approval to the exemption application for the technology transfer and license agreement between the Sui Southern Gas Company Limited (SSGCL) and USA-based M/s Itron Inc. with certain conditions to be complied.

The scope of agreement where exclusivity clauses have been allowed by the Commission is between SSGCL and M/s Itron to facilitate the manufacturing of gas meters in Pakistan.

The CCP in its approval has directed SSGCL to achieve 100% localization of gas meters as a result of this agreement along with maximum import substitution through adequate local production of gas meters to meet local demand, including the demand of Sui Northern Gas Pipelines Limited (SNGPL), the other gas utility company in Pakistan. The Ministry of Energy has also issued directions to SSGCL in this regard.

The CCP considers and grants exemptions pursuant to Section 9 of the Competition Act, 2010, inter alia ensuring that such exemptions have the economic benefits that outweigh the anti-competitive effects of business agreements for any exemption to be awarded.

CCP in its exemption has also directed that both parties to the agreement shall make concrete efforts to capitalize on the export potential of the gas meters and apprise annually to the CCP on the matter during the exemption period. The gas meters must be manufactured according to the specifications approved or allowed by the relevant regulator(s) and international standard.

The conditions set by CCP while awarding exemption are aimed at promoting localization and facilitating consumer interests in the relevant market besides economic benefits of import substitution to meet the local demand of gas meters with exports potential also.

Meanwhile, in their press release in August last year, Itron announced the completion of a technology transfer with Sui Southern Gas Company Limited (SSGC). “SSGC operates the only meter manufacturing plant of its kind in Southeast Asia, for manufacturing and assembling G1.6 and Gallus G4 residential gas meters under license from Itron. With the new technology transfer and license agreement, SSGC will manufacture parts of measuring units of the Gallus meter locally and assemble this unit in their meter manufacturing plant,” the statement said.

Justin Patrick, senior Vice President of Device Solutions at Itron said, “We are excited to work together with SSGC to support the utility’s efforts in localizing the production of gas meters in Pakistan. Taking advantage of Itron’s Gallus G4 meter design, SSGC is laying the foundation for future, smart capabilities while ensuring high levels of metering accuracy,” he added.

Itron’s statement further said that with the technology transfer of the Gallus G4 assembly line, the utility (SSGCL) opens the door to future technological possibilities and advancements. “As a smart-ready meter, the Gallus G4 can be equipped with communication technology for remote meter reading that enables better monitoring of the gas distribution network. Combined with a software and analytics platform, this could pave the way for optimized operations and reduction of losses. As a part of the project, Itron is providing comprehensive training to the team at SSGC, empowering the utility to efficiently operate the assembly line.”

Copyright Business Recorder, 2024