Case Details

Citation(s)
2020 SLG 630 2020 SLD 630 2020 PLD 261
Lahore High Court
Writ Petition No. 49178 of 2017, decision Dated: 13-12-2019,hearing Date : 28-10-2019.
AYESHA A. MALIK, JUSTICE
Petitioners by:
Respondents by:Ms. Ambreen Moeen, DAG., Mrs. Samia Khalid for
Respondent OGRA along with Altaf Hussain, Chief Audit Officer, Aatif Sajjad, Executive Director (Finance), M. Rizwan-ul-Haq, Executive Director (Litigation), OGRA, Fahad Mali

EJAZ TEXTILE MILLS LIMITED AND OTHERSVSFEDERATION OF PAKISTAN AND OTHERS

Law: Oil and Gas Regulatory Authority Ordinance, 2002

Section: 6(2)(r),9,13,21

(a) Oil and Gas Regulatory Authority Ordinance (XVII of 2002)-- ----S. 6(2)(r)---Petroleum prices---Determination by Oil and Gas Regulatory Authority ("OGRA")---Policy directives issued to OGRA by the Federal Government from time to time---Oil and Gas Regulatory Authority was bound to follow such directives. (b) Oil and Gas Regulatory Authority Ordinance (XVII of 2002)--- ----Ss.6(2)(r), 9 & 13---Re-gasified Liquefied Natural Gas ("RLNG")---Tariff determination by Oil and Gas Regulatory Authority ("OGRA")---Right of affected parties to a public hearing---Scope---Plea of petitioners (consumers of RLNG) that when OGRA made its determination for cost of services and transmission and distribution losses in the supply of RLNG, it was bound to hear them in a public hearing as such decision directly and adversely affects their rights---Plea of OGRA that it was not required to grant a public hearing to the petitioners as the impugned determinations were provisional which did not call for a public hearing---Held, that as per the RLNG supply agreements between the petitioners and the gas supply company, the provisional price of RLNG was to be fixed every month and this price was subject to change when the final determination was made---Admittedly the cost of service, transportation cost and retainage component had to be on actual basis in any financial year---Since cost of services and transmission and distribution losses was based on actuals, every determination made by OGRA would impact the petitioners---To cater to such impact, S.9 of the Oil and Gas Regulatory Authority Ordinance, 2002 ('the 2002 Ordinance) provided that a right of hearing should be granted where a decision would directly and adversely affect the rights of a person---Public hearing was necessary where OGRA had to make a determination on cost of services and Unaccounted for Gas ("UFG") as they directly impacted the petitioners---RLNG pricing mechanism had not been streamlined into a regular process where provisional and final determinations were systematically made and notified, hence it was necessary to keep all parties on board so as to ensure smooth management of the terms of the agreement between…
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