Eight years on, SNGPL yet to recover Rs400m late surcharge from food firm.

MULTAN -- The Sui Northern Gas Pipelines Limited (SNGPL) has yet to recover about Rs400 million late payment charges from a private food company in a case of massive gas theft in 2012.

On Sept 19, 2012, a team of SNGPL conducted a raid and disconnected supply by removing six connections of SM Food Makers over charges of gas theft and issued a detection bill worth Rs384m.

The company filed a petition with the Lahore High Court (LHC) and the court on Oct 10, 2012 directed to restore the supply subject to the depositing of Rs20m. Earlier, the company submitted an application to the SNGPL general manager terming the allegations baseless; however the company again was asked to submit the dues till Nov 1, 2012 against which the firm filed another petition and on Nov 5, 2012 the court set aside the detection bill and referred the matter to Oil and Gas Regulatory Authority.

The Ogra was directed to reevaluate the [gas pilfering] charges after hearing both the parties within three weeks while the company was directed to deposit Rs12m as an aggregate price for the prospective consumption of the gas for next three weeks.

Higher courts, Ogra, GUC hearing gas theft case since 2012

The SNGPL challenged the decision and got suspended the order to the extent of setting aside the detection bill while in final verdict on the request of the both parties the court stated that the order of detection bill will be construed as suspended instead of set aside.

The Ogra's designated officer (DO) directed the SNGPL to reassess/recalculate volume of pilfered gas into account of working hours for eight hours against four connections and 16 hours against two connections instead of 24 hours as was done earlier.

The SNGPL challenged the decision with the Ogra's appellant authority while the company filed petition with the LHC which was dismissed.

On June 6, 2013, the appellate authority reversed order of DO with the direction to reassess the volume on 24 hours. Soon after this decision the SNGPL disconnected the supply on June 9, 2013.

The company challenged the order with the LHC and the court on June 28, 2013 directed to constitute a six-member committee on the recommendation of both parties to reassess the gas consumed during the pilferage period besides issuing direction to SNGPL to restore the connections over the first out of three installments for the payment of Rs70.6m as Rs83m has already been paid while remaining 40 per cent (Rs156.6m) will be paid till the...