The Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) have both sought tariff increases from the start of the next fiscal year, citing growing financial requirements.
In separate requests to the Oil and Gas Regulatory Authority (OGRA), the state-run companies stressed that the tariff hikes are necessary to meet their growing costs and reduce a ballooning circular debt.
In its request, the SNGPL has requested raising its average gas price to Rs. 2,485.72 per million British thermal units (MMBTU) in light of financial requirements of Rs. 709.97 billion, with an aim to recover Rs. 207.43 billion shortfall. Public hearings on the proposal are scheduled for April 18 in Lahore and April 28 in Peshawar.
Similarly, the SSGC has requested an average gas price of Rs. 4,137.49/MMBTU, estimating financial needs of Rs. 883.54 billion. The company hopes to recover a Rs. 44.33 shortfall, with hearings on the requested scheduled for April 21 in Karachi and April 23 in Quetta.
Cheaper tariffs
Separately, 11 bagasse-based power plants have approached the National Electric Power Regulatory Authority (NEPRA) for a reduction in electricity tariffs, with a hearing on their pleas scheduled for April 16 in Islamabad. The plants, including companies such as JDW, Hamza Sugar Mills, RYK Mills Ltd., and Chiniot Power Ltd. have requested a review of fuel cost tariffs, permission to sell electricity directly to large consumers and a 50% reduction in working capital requirements.
Two companies, Attock Gen Ltd. and Foundation Power Company, have also filed for adjustments to their operations and maintenance indexation mechanism and a reduction in the insurance cap to 0.90%. NEPRA will also hear their case on April 16.