Gas utilities cut down UFG losses by around Rs1.95 billion

ISLAMABAD: The two state gas companies in their ongoing drive against the pilferage have so far managed to reduce ‘Unaccounted For Gas’ (UFG) losses by around Rs1.95 billion, a statement said on Wednesday.

Three months ago, the government had directed the companies to launch countrywide crackdown against gas theft that stood Rs50 billion annually and the state was giving Rs100 billion subsidy to 91 percent gas consumers.

The companies 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.

The official 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 Rs1.959 billion.

The official said the SSGC had so far caught 71 gas thieves in industrial, 223 in commercial, and 376 in domestic sectors; removed 713 illegal connections 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; disconnected 4,037 illegal connections from its distribution and transmission lines and lodged 70 FIRs.

Answering a question, he said during the last five years, the UFG losses registered one percent increase every year, which caused Rs154 billion loss to both the companies and led to an increase in the gas tariff.

He said the UFG loss ratio of SNGPL and SSGC had reached 11 and 13 percent due to misguided strategies and non-professional approach of the previous regime that failed to streamline the matters related to gas supply.

The 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 the SNGPL and the SSGC for the same.

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

The UFG, the official said, being one of the most critical issues in the gas sector, was a major drag on 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 added that almost all industrial customers had been ‘cyber-locked’ by restricting unauthorised access to the customer meter stations, where only authorised personnel had the permission to enter.

Besides, he said, electronic volume correctors had been installed at almost all the industries for strict check on gas consumption and abnormalities.