Ogra burdening the consumers with new tariffs – Pakistan oil and gas sector update

Ogra burdening the consumers with new tariffs – Pakistan oil and gas sector update

ISLAMABAD – Succumbing to the pressure of the federal government, Ogra has granted permission to rub salt on the injuries of gas consumers in a bid to pay the cost of reinstated employees, it is reliably learned.

Sources privy to the development have informed TheNation that Oil and Gas Regulatory Authority (Ogra) failing to face the pressure of the government has given go ahead to Sui Northern Gas Company Limited (SNGPL) to collect the hefty cost worth of Rs 278million
from the consumers resultantly consumers will bear the brunt of the incumbent government’s decision. 

Available document further confirmed that federal government had reinstated some 2,814 employees of both gas distributing companies SNGPL and SSGC in the year 2010 which were sacked in 1999. Gas companies instead of paying the cost of reinstated employees
from their profits have secretly been fetching billions from the over burdened consumers. 

These reinstated employees, despite possessing higher education lack technical knowledge and relevant background to produce intended results as per Ogra timelines. However, both SNGPL and SSGC are making concerted efforts by putting them through various
formal training sessions as well on job trainings. 

“Authority in view of above, allows 50pc expenditure on account of sacked employees amounting to Rs 278 million on provisional basis at this time, subject to improvement consequent to effective utilisation of these employees. The same will, however, be comprehensively
reviewed at the time of FRR and petitioner must be able to demonstrate enhanced utilisation of reinstated employees at that time, in terms of concrete measurable outputs, available documents of Ogra revealed.

Sources also informed that SNGPL pleaded an amount of Rs555 million to pay the cost of reinstated employees while both utilities had successfully fetched Rs5 billions during last two years on the said pretext. Both gas companies will collect the outstanding
dues of last eleven years from the consumers.

It is relevant to mention that federal government had reinstated 614 employees of SNGPL and 2,200 employees of SSGC in 2010 while 1,050 employees of SSGC were reinstated in 2009 after the decision of honourable Supreme Court (SC).

Short URL: https://www.newspakistan.pk/?p=10490

Posted by Ahmed Tariq on Jan 25 2012. Filed under Pakistan, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry