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Gas Security Deposit – Factoid

Gas Security Deposit – Factoid


On execution of the contract for the supply of gas, customers pay to SSGC a Gas Security Deposit (GSD) equivalent to estimated three months of natural gas consumption. GSD is meant to provide a security to  the gas companies in case of default by the customer.

In July 2013, vide a  notification number 6 (10)-2/2013, OGRA gave approval for an upward revision in the current GSD rates for SSGC as well as SNGPL, the first such change in rates in seventeen years.

OGRA increased fresh connections from Rs. 1500 to Rs. 4500 per connection and revised the rates for the existing customers on the basis of annual average consumption of three months.

OGRA has also revised the Reconnection fee for restoring gas supply from Rs. 200 to Rs. 371.

GSD is a refundable amount that the Company will return to the customer upon disconnection of gas supply, as per the terms and conditions of gas supply contract. At the same time, the other two types of customers namely commercial and industrial customers are already required to pay deposit equivalent to three months of their average consumption.

In order to lessen the burden on the customers, the revised GSD amount calculated for each customer will be recovered in 6 monthly installments along with their routine bills.

History: From 1985 to 1996, gas customers were required to pay GSD in the range of Rs. 100 to Rs. 350 at the time of fresh connections.  In May 1996, the Ministry of Petroleum and Natural Resources (OGRA was not founded then) revised the figures to charge Rs. 500 from a customer residing in a house  measuring 300 square yards  on a plot of land that also includes a kitchen. On the other hand, customers residing in houses equipped with geysers were being charged an additional amount of Rs. 500.

Domestic consumers’ sale prices and minimum charges

The Current (2013) and previous slap structure (1996)

# Sale Price (Flat Rate) 2013 (Rs. /mmbtu) 1996 (Rs./mmbtu)
1 Upto 100 million cubic meter Rs. 106.14 Rs. 40.56
2 Upto 300 million cubic meters Rs. 212.28 Rs. 48.22
3 Over 300 million cubic meter Rs. 530 Rs. 79.00

The Minimum charges are Rs. 149 per month