OGRA invites suggestions on gas companies’ petitions for ERRs 2021-22

Mar 22, 2021: The oil and Gas Regulatory Authority (OGRA) has invited suggestions from all stakeholders on petitions of the SNGPL and SSGC filed to determine Estimated Revenue Requirements (ERRs) and prescribed price of the commodity for the Fiscal Year 2021-22.

The Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have sought an increase in the revenue requirement of Rs857.40 and Rs109.78 per Million British Thermal Unit (MMBTU) respectively with effect from July 1, 2021, according to a public notice that appeared in national dailies.

In its petition, the SNGPL has projected an increase of Rs1,415.91 per MMBTU including the previous year’s shortfall of Rs 669.75 per MMTU for the FY 2021-22 in normal business. It also claimed the cost of Re-gasified Liquefied Natural Gas (RLNG) at Rs 27,940 million as part of the cost of gas.

The company has asked for a total revenue requirement of Rs 283,099 million, projected sales revenue at the current prescribed price of Rs 211,900 million, a total shortfall of Rs 71,199 million in the revenue requirement, and the previous year revenue shortfall at Rs 254,108 million.

Besides, the petitioner has projected an increase at Rs137.47 per MMBTU to cost of service for RLNG business for the next fiscal year, while Rs42,093 million for laying off 11,500 kilometers distribution pipelines to connect various new towns and villages at its network.

Similarly, the SSGC has asked for a total revenue requirement of Rs 251,596 million, projected sales revenue at the current prescribed price of Rs 216,602 million, and the total shortfall in revenue requirement of Rs 34,994 million.

Besides, the company has estimated RLNG cost of service at Rs 16,715 million or Rs 43.38 per MMBTU with effect from July 1, 2021, while it projected Rs 1,044 million for the laying of 278 kilometers distribution lines to connect new towns and villages.

The authority invited all the interested/affected persons including gas consumers and the general public to furnish their comments, suggestions, and intervention requests, within 14 days after publication of the public notice.

APP