SSGC Recovers Billions from Consumers to Offset Gas Shortfall

• Sui Southern Gas Company (SSGC) imposes billions in additional charges on customers to compensate for gas losses.
• SSGC customers received over Rs11 billion in added charges to counterbalance gas theft.
• Between July 2023 and May 2024, SSGC imposed over Rs11 billion in extra charges, burdening over 3.5 million customers.

KARACHI: The Sui Southern Gas Company (SSGC) is reportedly imposing billions of rupees in additional charges on consumers to compensate for gas losses, according to the reports.

According to sources, SSGC customers have received over Rs11 billion in added fees, allegedly to counterbalance gas theft. The company issued bills for a total of 23 billion cubic feet of gas, and by inflating consumer charges, reduced its Unaccounted-for Gas (UFG) percentage from 18% to 10%, reportedly turning reported losses into profits.

Between July 2023 and May 2024, SSGC imposed more than Rs11 billion in extra fees, placing a significant burden on its over 3.5 million customers. These additional charges, covering theft, slow meter readings, and UFG adjustments, brought the company’s billing total to Rs79 billion during this period—a rise of Rs44 billion compared to the prior year.

Additionally, SSGC recently began collecting a “conical baffle” fee of Rs2,085 from consumers as part of a geyser campaign. This fee has affected millions of consumers within SSGC’s 3.2 million customer base, many of whom received the charge even if they did not have geysers in their homes. The charges were applied prior to the installation of the conical baffles.

In response to consumer complaints, the Oil and Gas Regulatory Authority (OGRA) clarified that conical baffles were authorized to enhance safety and help reduce gas consumption. OGRA urged affected customers to submit complaints with SSGC or OGRA directly if they were charged without having a geyser.

SSGC explained that surveys were conducted for baffle installation, with charges approved by OGRA, and that installation has begun through contractors. Consumers with concerns were advised to contact their nearest Customer Facilitation Center (CFC) for assistance.

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