ISLAMABAD – The Cabinet Committee on Energy (CCOE) on Monday met two gas utilities companies in the style of 13th generation, transmission and distribution companies of the former WAPDA amid opposition from consultants, experts and key stakeholders. The proposal to divide into five small companies, one transmission and four provincial distribution companies will be discussed.
According to Dharti News, in a summary to the CCOE, Gas the Petroleum Division (MEPD) of the Ministry of Energy has sought approval of five major initiatives as part of the reform agenda under the IMF program.
Independent Consultant PMG, a financial stability group, and the Oil and Gas Regulatory Authority (OGRA) oppose the proposed measure of financial and technical affiliation parameters or broader consultation with the provinces.
Prompt appointment of transaction advisor through competitive process to divide Petroleum Division Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) into 5 companies. Wants
Second, the Petroleum Division wants the two gas utilities to jointly bear the cost of the transaction consultant and regulator so as to allow consumers to recover the cost from the utilities as part of the revenue requirement of the gas utilities. Seek financial support from agencies.
Interestingly, both companies and their shareholders are not only opposed to its distribution, but are not in favor of self-financing its transfer for obvious reasons.
Third, the Petroleum Division has sought permission to form a National Gas Transmission Company (NGTC) similar to the National Transmission and Dispatch Company (NTDC) to provide joint carriers for existing and newly formed gas distribution companies. To work as
Fourth, the distribution network of the two is then run by SNGPL and SSGCL to run small business units or distribution companies in multiple gas distribution companies on the same principles in their jurisdiction. Will be distributed.
The Power Division recommended that “companies be set up on technical and economic grounds, including population, network density, gas’s demand, workload, etc.”
Fifth, the Power Division will “simultaneously implement an average pricing mechanism in terms of gas’s sales prices or any other appropriate mechanism (which) will be implemented.”
Published in Dharti News, November 9th, 2020