The main objectives of the audit were to confirm the genuineness of the losses claimed by the SNGPL to evaluate the factors for the losses and access management''s losses reduction plan. UFG losses of SNGPL were 11.17 percent, 10.57 percent and 10.97 percent in 2012-13, 2013-14 and 2014-15 respectively whereas Oil and Gas Regulatory Authority (Ogra) allowed UFG losses of 4.5 percent in these years.
"The excessive percentage of UFG losses had adversely affected the financial position of the company as it sustained losses of Rs 9.749 billion, Rs 3.965 billion and Rs 2.495 billion in 2012-13, 2013-14 and 2014-15 respectively," said the audit.
During audit it was concluded that the claims of losses by SNGPL were not based on facts because reconciliation of gas received and gas sold was not properly done and claims of losses for non-consumers lacked credible basis. There was lack of vigilance regarding suspected consumers.
"Concrete efforts to reduce UFG losses by a proper UFG reduction plan and replacement of obsolete distribution network were not undertaken effectively by the management," the audit report stated.
Audit further finds that the claims of theft charges were booked on extraordinary higher side. The non-consumer volume valuing Rs 8.8 billion was claimed in 2012-13 to 2014-15 whereas management did not have any strong basis and it appeared that excessive volume had been claimed from Ogra.
The SNGPL claimed UFG losses of Rs 9.8 billion. However, the Ogra provisionally allowed 75 percent of claimed volume and for rest of the amount, the claim was pending with the government. The OGRA entertained SNGPL claims with directions to take concrete steps with the help of government but no progress was noticed in that direction.
The operational fixed assets were shown at higher side by SNGPL while taking claims from OGRA regarding determination of final revenue requirements of (FRR) in 2012-13, 2013-14 and 2014-15.
Audit observed that the reconciliation of the gas received in system and gas billed was not being done at TBS levels and many SMSs of Lahore, Rawalpindi, Peshawar and Multan region were looped and therefore, exact locations of gas leakages'' losses were difficult to identify.