Customer Management : Sui Southern Gas Company Limited

Mains Extension (Residential /Commercial Area)

These mains are constructed from the outlet of T.B.S up to the prospective consumer premises i.e. in streets of Cities, Towns & Villages. The Normal pressure of gas is maintained from 10 to 60 PSIG.

Every year Physical Targets are fixed by the company, to extend main in residential, commercial and industrial areas. These targets and the amount involved are allocated in the Annual Budget, which is approved by the Board of Directors. Details of physical targets are proposed by the Sales deptt., which contains capital cost/ length and diameter of mains to be extended and number of gas connections to be processed during the financial year. Physical targets for the following are approved by the Company’s Board for each financial year.

Major mains extensions. Minor mains extensions.

As per present practice of the company mains extension for a particular scheme / area for 1 Km or more is categorized as major main. All such cases are approved by the management once in a financial year in the Annual Development Plan.

In case where length of mains extension required is less then 1Km, it is categorized as minor main. In this case also certain number of Kms are got approved by the management. But these cases are processed throughout the year under the limit of approval obtained.

The criteria for investment for extending mains to new areas / towns and villages etc; fixed by the Cabinet Committee on Energy (CCE) is as under.

CAPITAL COST PER CONSUMER
Punjab and Sindh Rs. 20,000/=
N.W.F.P. Rs. 40,000/=
Baluchistan Rs. 100,000/=

In towns where gas main is already available the gas companies would continue to extend their network from their own resources under a phased program.

The Company may also extend network to new schemes/colonies on the basis of self-financing by the plot/house owner, at their request. The recovered amount should be treated as special deposit entailing a markup equal to 25% of State Bank Discount rate than prevailing will be credited to customer’s billing account on yearly basis, refundable on permanent disconnection /termination of contract.

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Processing Procedure of Mains Extensions


1.	If an area not yet provided by gas mains is to be developed, initiation of the project may be on request of organization/ agency/ government organization or a collection of local people. Such request will result in the opening of a file by Sales Deptt., obtaining of official approved drawing/plan for the area from civic authority. The scheme will be entered in database for monitoring of the status.

2.	Each case is referred to Planning Deptt., on preprinted book of commercial division having Book No. and Serial No. Area drawing is also sent to planning indicating the location where gas main extension is required, for technical survey and proposal of diameter and length of gas mains to be extended.

3.	Planning Deptt., sends back the area drawing duly marked the required mains along with operation book having the same Book No. and Serial No. Sales Deptt., prepare a feasibility with the help of cost schedule provided by Finance Deptt. If the case is found feasible, the same is put up for management’s approval on approval book with the same Book No. and Serial No., along with the feasibility details. If the case is found un-feasible then the applicant is informed accordingly.

4.	Once Management approval is accorded for an extension case, the case is referred to Finance Deptt., for the capitalization of the amount and issuance of Work Order.

5.	Work order/Job Card along with Management’s approval is sent to Planning Deptt for onward transmission to Distribution Deptt., for execution of work. After execution and commissioning of main extension the Distribution Deptt., send commissioning advice to Sales & Marketing Department. Whenever a new area is opened, SSGC distributes:

		Circular to registered contractors to launch activity in the area and to book orders for
		new gas connections.
		SSGC distributes a printed brochure to the area residents, for their guidance that How
		to get new gas connection.


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Intermediate Pressure Gas Pipeline (I.M.P.L)


1.	These pipelines will be normally laid for multistoried buildings, departments and housing schemes on customer’s cost, where main extension is not possible. These buildings are constructed in shape of numbers of independent blocks and residential units.

2.	The gas supply pressure is normally maintained as 08psig, and the entire job is carried out by SSGC.

3.	Whenever, an application is received for laying of Intermediate Pressure Gas Pipeline, applicant is requested to provide 4-copies of layout plans on scale drawing along with details of Nos of blocks and Nos of flats, for which IMP is required.

4.	Details of material and labor charges is prepared by Sales Engineer, which is checked by Sr. Sales Engineer and costing is done by the costing section with the help of list of Balances provided by the Finance Department.

5.	As this pipeline is laid underground and the un-metered gas is supplied through this pipeline, therefore, 50% of total cost is charged as nonrefundable maintenance charges.

6.	Finally an approval summary will be prepared and proposed by Deputy Chief Engineer, Sales for according approval by the Head of the Department.

7.	Quotation will be prepared and issued to the party for arranging payment. On receipt of payment job card will be issued and sent to Utilization Department for execution of the job.
8.	After completion of job final billing of material and labor will be done on actual bases.
9.	To avoid leakages due to corrosion in the underground gas pipeline Polyethylene pipes will also be laid at some locations. All connections will be processed at a time however, block-wise connections will also be processed on specific request if, all the blocks are not ready for possession due to shortage of funds.


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Acknowledge & Registration of Industrial Application for Gas Connection


1.	New applications will be received from the prospective customer on SSGC enquiry form for new/extension/ alteration, Industrial, Power Generation, CNG Station and change of tariff cases, along with all the requisite documents as mentioned therein.

2.	Each application will be checked by the Sales Officer and allocate a new file number. A letter for required documents/ information will be send to the prospective customer, who sends incomplete applications.

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Planning and Survey


1.	After completion of documents the case wherever technically required will be referred to planning department for main line’s availability and load confirmation or that whether the existing main would be capable to meet the load required by the customer. If main extension is not required the case is forwarded for the survey for Internal Installation.

2.	If the main extension is required, after approval the quotation for mains extension is issued to the customer as per company’s criteria for main extension. After receiving the payment from the customer, job card is prepared and sent to the Planning Department for execution of required main extension.

3.	After completion of documentation and entry in computer an initial survey of the site will be conducted by the Engineer.

4.	Engineer will conduct a survey considering existing location of gas mains, calculate the hourly load and estimated monthly consumption of all gas burning equipments.
5.	Engineer will also design CMS, proposed houseline up to gas burning equipment.
6.	List of material, labor and load sheet will be prepared by the concerned engineer and also houseline drawing will be marked showing location of CMS, route of houseline up to gas burning equipments.


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Costing and Quotation


1.	Costing will be done by sales person, duly checked by an officer, on the basis of rates of various items (list of balances) provided by Finance Division.

2.	Quotation will be prepared after approval of the Head of the Department, for issuance to the customer, which comprises the following:

		Description of the job.
		Amount of installation charges, which comprises cost of material and labor charges, to
		be paid by the customer. All material will be provided by SSGC, however in case of non-availability of material, SSGC may ask to the customer to supply the short items to be utilized in the job.
		Amount of Gas Supply Deposit (GSD), which will be calculated on the basis of 3-months’
		estimated gas consumption. GSD will be paid in the form of Pay order, Bank Guarantee, Irrevocable Revolving Letter of Credit (IRLC).
		Customer will be given options in Quotation for various GSD options available to him.
		Quotation will include all other relevant terms and conditions i.e. road cutting permit,
		scope of work and time frame for the execution of the job.
		Enclosures for quotation will include, one set of quotation, specimen for Bank
		Guarantee/ IRLC, 2-nos of contract forms, specimen of undertaking for gas load.
		For power generation different contract form will be supplied.


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Payment

Payment will be made by the customer in the form of pay order for installation charges (based on estimated cost of material and labor for installation job) and in the form of pay order or bank guarantee or RLC for Gas Supply Deposit (GSD). However, customer will abide by the all terms and conditions as applied for various GSD options for 90, 60, 45, and 30days. Enclosures will also be supplied as per SSGC specimen, i.e. Load stamp paper, 2-nos of duly signed contract forms and covering letter on customer’s letter head.

PAYMENT OPTIONS:
OPTION -1: The existing requirement of Bank Guarantee or cash equivalent to three months average billing.
OR
OPTION -2: Submission of a Revolving Letter of Credit from a Scheduled Bank for an amount equivalent to average billing for 60 days (to be advised by the Company).
OPTION -3:

The consumer will maintain GSD equivalent to 45 days average billing.

SSGC will issue monthly bills as usual.

The consumer will agree to the following:

	Interim payment against the monthly bill by 5th day of a calendar month equivalent
	to 50% or higher of the following two amounts:
	Preceding month’s bill , or
	Average bill for preceding three months.

The balance amount after adjustment of adhoc payment shall be payable by the

consumer on or before the due date of the bill.

The consumer will make the two payments every month direct to the Industrial Billing

Section of SSGC through Bank’s Pay Order.

SSGC will disconnect gas supply without any notice if any of the two payments required

to be made every month is not received as per schedule.

OPTION -4:
The consumer shall maintain a G.S.D. equivalent to 30-days average billing and shall make interim adhoc payments on weekly basis.
The procedure will be as in Option No.3 above and the payment schedule will be as under:

28th of the month in which consumed.
5th of the following month
12th of the following month
Due date of the bill (around 20t of the following month)

OPTION -5: The Gas Supply Deposit equivalent to 60-days’ average billing may be accepted from those consumers who have a track record of making regular monthly payments on due date and have not defaulted more than once in last three years and that too for a short duration.
However, this concession would be immediately withdrawn as soon as first default is committed by consumer.

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Job Card, Test Form and Meter Approval


1.	Sales & Marketing Department will handover the pay order to the bank and received receipt will be sent to Finance Division for issuance of job card. Test form (containing new account number) and meter approval (containing approved load and gas supply pressure as essential information) will be generated by computer section.

2.	Concerned sales officer will send job card alongwith load sheet, material sheet, test form and factory/ premises layout plan to utilization department for execution of work, and meter approval sheet will be sent to measurement department for approval of meter.

3.	Utilization department will carry out the execution of the job and will send meter commissioning advise containing account number, meter type, meter number, meter index, gas supply pressure and commissioning date to billing department for billing purpose, to sales & marketing for information and record purpose and to measurement department for their take over of meter station for schedule maintenance of meter station.


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Commissioning


1.	Commissioning of all industrial, high pressure, power generation, and CNG stations will be carried out in presence of joint representative of Utilization Department and Measurement Department.


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Final Billing of Job Cards


1.	After execution of work Utilization Department will send material requisition sheets and material return vouchers to Sales & Marketing Department for all the materials issued, used, and returned to store in a particular industrial, power generation, CNG station, or High Pressure job.

2.	An officer of Sales & Marketing department prepares summary sheets, based on actual material and labor utilized in the job and subsequently prepares debit or credit note sheet.

3.	Summary sheet along with all the material requisition and material return vouchers, duly signed by the section incharge, will be forwarded to Finance Division for examining and finalizing the amount to be debited or credited to the customer.


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Policies

As per directives of Ministry of Petroleum & Natural Resources (MP&NR) and company’s policies following procedure will be adopted.

1.	Gas connection will be provided to industrial and high pressure commercial customers on “as and when available” basis from March to November each year.
2.	Gas connection will be provided on “first come first served” basis.
3.	Priority shall be given to the applicant for supply of gas having Co-Generation facilities.
4.	If Power Generation is not located on company’s existing gas pipeline it would be considered on 100% cost recovery from the applicant.

Separate meter will be installed for Power Generation connection.

Fixed quota of 10mmcfd in a year will be followed a set by the Ministry of Petroleum & Natural Resources.

Gas connection for power generation will be provided to export oriented industrial units only.

For export purpose 70% export or more is required for approval for power generation.

Recommendation letter from Export Promotion Bureau (EPB) is required for local industries.

10.

For Foreign Industries/ those local industries having foreign investment, recommendation letter from Board of Investment (BOI) is required.

11.

Cost of main extension up to Rs.1 million will be borne by SSC for industrial customers in general.

12.

For CNG customers a refundable loan will be obtained from the customer and will be adjusted in future gas bills in 48 months.

13.

If, cost of gas mains will be higher than Rs.1 million, cases will be processed subject to financial feasibility.

14.

For non feasible cases 100% cost will be borne by the customer.

15.

For high pressure commercial customers, if main extension will be required company will spend up to Rs.20,000/- per customer. Al the mains costing higher than Rs.20,000/- will be laid at customer’s cost.

16.

Commissioning of gas supply to a CNG Station will be subject to a clearance letter from Oil & Gas Regulatory Authority (OGRA) conveying the satisfactory report from 3rd party inspection M/s. HDIP.

17.

Gas connection will not be provided to those industries which are banned by the Government like Brick Manufacturers or those large industries for which prior approval and allocation of quota of gas is required from the Ministry.

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Tariff

1.	Tariff for each category of customers will be determined by the directive of OGRA.

2.	For industries large, medium, small as well as cottage, will be allowed industrial tariff, if they are involved in processing of industrial raw material into value added products.

3.	For power generation industrial tariff will be allowed on ad hoc basis as per directives of Ministry.

4.	CNG and Commercial customers will be allowed tariff as defined by the Ministry of Petroleum & Natural Resources.


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Change of Tariff from commercial to Industrial

1.	Existing Commercial Customers which are using Gas for kitchen / Canteen use, located in Industrial areas who are extending / expending their business and require Gas connection for value addition by using Gas for processing through any Gas burning equipments like Boiler, Furnace, Molding Machine, Printing Machine etc, irrespective of the volume of Gas used, can apply for change from Commercial tariff to Industrial tariff.

2.	Survey is conducted by Sales Engineer to calculate Gas requirements and cost of installation. Gas supply deposit (GSD) based on connected load, Material sheet, load sheet is prepared & costing is done as per prevalent prices. Drawings are marked for CMS & gas piping inside factory. Approval sheets are prepared for approval from head of the department for cost of installation & Gas supply deposit.


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Change of Tariff from Industrial to Commercial

1.	Existing Industrial customers using Gas for equipments / processing like Boilers, Furnaces, Dryers, Pharmaceutical, and Glass Industry etc are billed on Industrial Tariff. However, if any existing Industrial Customer changes its trade and does not require Gas for Industrial processing like spinning weaving (Looms for Textile) etc can apply for change of Tariff from Industrial to Commercial for Canteen / Office kitchen. This is however subject to the condition that the old Gas burning equipments are no longer in use/removed from the premises.


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Enhancement in load Cases (Industrial)

1.	Those industries who apply for extension in load will submit duly filled enquiry form giving details of additional gas burning equipments, gas load requirement, working hours, and factory layout plans showing the proposed location of new gas burning equipment. Ownership and other valid documents already submitted by the customer will not be asked again. However, company may ask the customer to submit any other legal document like ownership documents, tenancy agreement, copy of NTN certificate, N.I.C. etc. incase of the change of name of an industry. Same procedure will be adopted i.e. planning, survey, approval, quotation, payment of installation charges and GSD etc. as mentioned in the case of Industrial new gas connection.


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Alteration in Houseline, Re-routing, Shifting of connection Leakage Cases

1.	As soon as leakage cases’ information is received from a customer it will be referred to CRD, Measurement or DSM Department for rectification. However, premises will be surveyed on urgent basis to prepare list of material and labor for replacement of houseline for issuance of quotation to customer for payment and on receipt of payment job card will be obtained from Finance Division and it will be forwarded to Utilization Department alongwith list of material and layout plans, clearly showing the portion of houseline to be replaced. Utilization Department will carry out the job on priority.

2.	All alteration cases will be surveyed wherever technically feasible. Quotation will be issued to the customer for payment.


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Unauthorized Extension in Load, Pressure or Overloading of Meter Cases


1.	All such cases will be surveyed and processed on priority. Premises will be surveyed to check actual connected load, hours of daily operation and type of industry. The same will be compared with the approved load on record with SSGC of that particular customer and if technically feasible, covered by the approved policy, quotation for unauthorized extension of load will be issued to the customer for payment. This quotation will be comprised of the cost of material and labor involved in modification of CMS, houseline as well as Gas Supply Deposit (GSD).

2.	Customer will be asked to pay the amount within the specified period and with a clear warning that if the payment is not received within the specified period, gas supply would be disconnected.

3.	On receipt of payment a job card will be obtained from Finance Division for execution of work and forwarded to Utilization Department for execution of work.


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