ISLAMABAD-Sui Southern Gas Company Limited (SSGCL) has sought a hike of up to 887 percent in the security deposit of unsecured gas consumers to cover a Rs9.579 billion gas supply deposit shortfall.
On average basis, the company has sought 176 percent hike in the security deposit of unsecured gas consumers, taking their existing deposits from Rs5.439 billion to Rs15.019 billion. In a petition filed with Oil and Gas Regulatory Authority (OGRA), for revision of security deposit of domestic consumers, SSGCL has sought the regulator’s approval for the collection of additional security deposit of Rs9.579 billion from the consumers.
OGRA on July 05, 2013, had revised security deposit for domestic consumers whereby once the consumption pattern of the consumer is established, revision of security deposit on the basis of annual average consumption of three months may be carried out by the company. The company’s existing practice is on the same lines. However, the average domestic bill varies during winter to summer because of domestic tariff slab structure, and default ratio increases since the GSD cover becomes insufficient to cater higher bills in winters. 
Hence, in order to secure the receivables from domestic consumers, there is a need to revise the Gas Supply Deposit (GSD) on the basis of highest three months consumption during the year. According the petition, the change of basis for GSD calculation will help the company to recover the defaulted amount from the held gas supply deposit. At present, only 1.697 million (53 percent) out of 3.186 million domestic consumers are secured with their gas supply deposit, said the petition. Whereas, 1.426 million domestic customers are unsecured with GSD of Rs5.439 billion against required GSD of Rs15.019 billion, and shortfall is about Rs9.579 billion. Currently, the unsecured 1.426 million domestic consumers are paying an average Rs3,816 security deposit; however, SSGCL wants to take it to Rs10,535.
SSGCL has proposed 14 different slabs based on the consumers’ monthly bills. SSGCL has requested OGRA to allow recovery of gas supply deposit shortfall from unsecured domestic consumers on the basis of highest three-month consumption during the year to mitigate default risk and lower provision against doubtful debts.  GSD shortfall will be recovered in six equal monthly installments. The security deposit for the consumers with over Rs60,000 monthly bills will face a huge hike of Rs179,092 (887 percent) from the existing Rs20,193 to Rs199,284. While for the consumers with the bills of Rs1,000 per month, the security deposit will go up by around 24 percent from the existing Rs1,688 to Rs2,088. For the consumers with their bills from Rs1,001 to Rs3,000, a hike of 43 percent from the existing Rs4,341 to Rs6,312 has been sought in the GSD. For the consumers with Rs3,001 to Rs4,000 bills, an increase of  87 percent from Rs4,012 to Rs7,529 has been sought.
For the consumers with Rs4,001 to Rs5,000 bills, a hike of 119 percent from the existing Rs3,773 to Rs8,261 has been proposed. For the consumer with the bills of Rs5,001 to Rs7,000 who have the existing security deposit of Rs3,640, a hike of 160 percent has been proposed which will take it their GSD to Rs9,461. For the consumers having the bills of Rs7,001 to Rs10,000, a hike of 172 percent has been proposed taking their GSD from the existing Rs4,903 to Rs13,357. For the consumers with Rs10,001 to Rs15,000 billion, an increase of 224 percent has been sought taking the GSD from the existing Rs5,330 to Rs17,275. For the consumers with the monthly bills of Rs15,001 to Rs20,000, a hike of 255 percent has been proposed which raised their GSD from Rs6,827 to Rs24,249. For the consumers with the bills of Rs20,001 to Rs25,001 SSGCL has proposed a hike of 390 percent taking their GSD from Rs5,683 to Rs27,831. For the consumers with their bills of Rs25,001 to Rs30,000, an increase of 453 percent has been proposed taking their GSD from the existing Rs5,989 to Rs33,099. For the consumers with the monthly bills of Rs30,001 to Rs40,000, a hike of 336 percent has been recommended taking their GSD from Rs10,375 to Rs45,236. OGRA will hold hearing on SSGCL petition on December 18 in a five-star hotel in Karachi.