Action to curb UfG: SSGC posts sharp losses despite meter change initiative

Business Recorder reported that the Sui Southern Gas Company (SSGC) saw its Unaccounted For Gas (UfG) losses climb from 13.82 per cent to 17.84 per cent over the span from FY 2013-14 to FY 2021-22, even after replacing meters for 80 percent of customers in Sindh and Balochistan. On Thursday, the Auditor General of Pakistan told the Public Accounts Committee that Rs19.5 billion spent on swapping 2.563 million of 3.267 million meters had not reduced UfG.

SSGC officials argued that UfG fell from 77 bcf in FY 2018-19 to 45 bcf in FY 2022-23, yet the percentage reduction still fell short of the OGRA benchmark. Managing Director Muhammad Amin Rajput said the replacements were also meant to improve billing accuracy and overall service operations, though Business Recorder noted those claims remain unverified. Separately, auditors flagged six fake meters used for illegal commercial and industrial connections between FY 2020-21 and FY 2022-23, a loss of Rs123.6 million.

SSGC's fact-finding inquiry has been completed and shared with audit, and it found no sign of staff collusion or procedural failings. The company said the recovered fake meters were being used without authorisation in a territory outside its service area, a factor it linked to higher UfG and a negative effect on its financials.