Gas Companies Reduce Around Rs 1.95 Bln UFG Loses

ISLAMABAD, (UrduPoint / Pakistan Point News - 29th May, 2019 ) :The two state companies, Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL,) in its ongoing drive against the commodity pilferage have so far managed to reduce Unaccounted For Gas (UFG) loses by around Rs 1.95 billion.

Three months before the government had directed the companies to launch countrywide crackdown against gas theft that stood Rs 50 billion annually and the government was giving Rs 100 billion subsidy to 91 percent gas consumers.

"The companies, under the leadership of Minister for Petroleum Omar Ayub Khan, are carrying out anti-gas theft operation with zero tolerance, which is helping in drastic reduction in the UFG ration and saving millions of rupees," an official privy to the petroleum sector developments told APP.

Giving details, he said, the two companies had so far dealt with approximately 79,325 gas pilferers, registered 86 First Information Reports (FIRs) and removed 4,750 illegal connections from their distribution and transmission networks, saving over Rs 1959.07 million.

The official said the SSGC had so far caught 71 thieves in industrial, 223 in commercial and 376 in domestic sectors, removed 713 illegal connection from its distribution network and lodged 16 FIRs against the pilferers. While, the operation is going on daily basis and the figures are changing with each passing day, he added.

Similarly, the SNGPL apprehended 62 thieves in industrial, 1,560 in commercial, 72283 in domestic sectors, removed 4,037 illegal connections from its distribution and transmission lines and lodged 70 FIRs against the pilferers.

Answering a question, he said during the last five years, the UFG losses registered one percent increase every year, which caused Rs 154 billion loss to both the companies and increase in the gas tariff.

He said the UFG loss ratio of SNGPL and SSGC had reached 11 and 13 percent due to wrong strategy of the previous government and non-professional approach to streamline the matters related to gas supply.

The Pakistan Tehreek-i-Insaf government, the official said, had devised an effective strategy to bring down the UFG ratio, under which companies were removing service lines of those consumers whose gas connections were neither intact anymore nor enrolled in the monthly billing system due to certain reasons.

He said the government was also planning to establish special police stations at all regions of SNGPL and SSGC to bring down the UFG ratio.

Replying to another question, he said gas theft, law and order affected areas, minimum billing, leakages, measuring errors and shift of bulk sales to retail sector were among the major UFG contributing factors.

The UFG, the official said, being one of the most critical elements in the gas sector, played a vital role in reducing the profitability of the gas transmission and distribution companies.

He said the government had promulgated the Gas (Theft Control & Recovery) Ordinance, 2016 and involved law enforcement agencies to prevent gas theft.

The official said almost all Industrial customers had been 'Cyber Locked' by restricting unauthorized access to the Customer Meter Stations and allowing entry to authorized personnel only.

Besides, he said, Electronic Volume Correctors had been installed at almost all the industries for strict check and balance on gas consumption and abnormalities.

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