Major consumers: Gas Discos' receivables reach Rs 218 billion

18 May, 2016

Gas distribution companies' outstanding dues against different gas consumers have reached Rs 218 billion. According to official figures, Sui Southern Gas Company Limited outstanding dues against different consumers including K-Electric, Water and Power Development Authority (Wapda), Pakistan Steel Mills (PSM), Independent Power Produces (IPPs), Captive Power Plants (CPPs), Compressed Natural Gas Stations (CNG) and General Industry stood at Rs 114.6 billion as on March 2016.
The outstanding dues of Sui Northern Gas Pipelines Limited (SNGPL) against various consumers stood at Rs 93.8 billion of which Rs 68 billion are on account of Gas Infrastructure Development Cess (GIDC) while Rs 35.8 billion are outstanding against other consumers including textile industry, CPPs, general industry and CNG outlets.
K-electric is the top defaulter of SSGCL with Rs 60.96 billion outstanding dues followed by Pakistan Steel with Rs 41.78 billion, IPPs Rs 5.31 billion, Wapda Rs 4.25 billion, CPPs Rs 2.05 billion, CNG Rs 200 million and general industry Rs 23 million.
CNG sector of Punjab with Rs 37.9 billion is leading defaulter of SNGPL which includes Rs 35.3 billion on account of GIDC and Rs 2.6 billion other than GIDC dues. Rs 6 billion are outstanding against 93 CPPs on SNGPL network on account of GIDC, while Rs 465 million are dues on consumers (other than GIDC), Rs 7.7 billion on account of GIDC against 189 textile captive units and other than GIDC Rs 1.01 billion. Outstanding dues against 542 general industrial units of account of GIDC stood at Rs 5.84 billion and Rs 3.3 billion against 240 textile units.
SNGPL has disconnected gas to 27 CPPs over non-payment, 17 captive textile units, 1303 CNG stations, 585 industrial units and 97 textile units over the past three years. According to official data from July 2010 to February 2016 SNGPL has detected 1,530 industrial units involved in gas theft, which over the past 6 and half years have used 23.61 Billion Cubic Feet (BCF) of stolen gas resulting in an estimated financial loss to national economy of Rs 13.7 billion.
The break-up of users of 1.8 BCF stolen gas is as follows: 111 industrial units in 2009 causing a loss of Rs 623 million to SNGPL. In 2010 359 industrial units used 2.35 BCF of stolen gas costing Rs 1.052 billion loss to national kitty, 455 industrial units in 2011 consumed 5.68 BCF of stolen gas causing a financial loss of Rs 3 billion to national economy; 281 industrial units consumed 4.72 BCF of stolen gas in 2012 and caused a financial loss of Rs 3 billion to SNGPL, in 2013 a total 181 industrial units were involved in gas theft and used 6.48 BCF stolen gas and caused Rs 3.59 billion loss; in 2014 some 101 industrial units consumed 1.1 BCF of stolen gas and caused a loss of Rs 871 million, and in 2015-16 an estimated 1.48 BCF stolen gas was used by 41 industrial units on the network of SNGPL which caused a loss of Rs 1.22 billion to national economy.
According to officials SSGCL's a total of Rs 61 billion are outstanding against K-Electric since long and the power company now is paying current gas bills and instalments as per agreement. Moreover, the officials said that K-Electric has requested the Sindh government to release Rs 35 billion outstanding amount against Karachi Water Board which will enable it to payback the outstanding amount of SSGCL. Wapda has paid Rs 2.3 billion on May 2, 2016 to SSGCL and now only current gas bills are outstanding against Wapda. According to official data various defaulter gas consumers have started paying their gas bills in instalments as per agreement with the gas utility.
SSGCL has filed cases against various gas defaulting consumers including Pakistan Steel Mill (PSM) in Sindh High Court for the recovery of Rs 41.78 billion outstanding amount, against DHA Desalination Plant (IPP) for recovery of Rs 2.3 billion outstanding amount and Hussein Industries Limited for the recovery of Rs 122 million.

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