This is with reference to a Business Recorder news item titled 'PSM explains criticality of gas supply' that appeared in your esteemed newspaper on page No 8 on November 11, 2015. "At the outset SSGC would like to clarify that in contrary to Rs 60 million appearing in the news as the principal bill for the month of July 2015, the actual bill (principal) for this month is Rs 178 million.
The late payment surcharge (LPS) on accumulated outstanding payments for the month of July is actually Rs 708 million in contrary to Rs 720 million, shown in the news. "PSM has been continuously defaulting on its payments, especially during last one and a half years, creating a major impact on the financial health of SSGC, which has forced the utility to derail its capital expenditure projects that are in the best national interest. Furthermore, SSGC has to timely pay huge amounts against its gas purchases and such defaults hamper our payment schedules. The Company does not have the cash flow to support any future defaults.
"Here it may be noted that in a high level meeting convened on September 18, 2015 in Islamabad, attended by all concerned including Federal and State Ministers for P&NR and CEO PSM, it was decided that SSGC would restore gas pressures provided PSM pays the bill of September 2015 in advance and in future adopts a pre-payment method for settling its bills, also ensuring that payments are honoured by its banks, failing to which SSGC would reduce the gas pressure or even disconnect the supply.
"Despite the fact that PSM has failed to honour the decisions of this very meeting and keeping in view the fact that we have received last payment in March 2015, SSGC has not disconnected its gas supply as the outstanding bills continue to mount."
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