Law: Oil and Gas Regulatory Authority (Amendment) Ordinance, 2002

Section: 7,8,21

Law: Natural Gas Tariff Rules, 2002
Section: 4,5,10,18,21
OIL AND GAS REGULATORY AUTHORITY ORDINANCE, 2002----Sections: 7, 8 & 21 - Natural Gas Tariff Rules, 2002, Rules: 4, 5, 10, 18 & 21 - NEPRA Licensing (Application & Modification Procedure) Regulations, 1999, Regulation: 21 - Constitution of Pakistan, 1973, Arts. 18 & 25 - Gas Tariff Notification dated 23.10.2010 - Directive - Nature of - Execution of public duty time limitation - Failure to determine category- wise prescribed price at the relevant stage - Definition of captive power - Plea of promissory estoppel - Appellants challenged an OGRA notification by filing suits in the High Court, which were dismissed by a Single Judge - It was held that the appellants were engaged in production power for onward supply to other entities without any self-consumption, therefore, cannot be categorized as “Captive Power Producers” - Appeal against -

FACTS
The Appellants are retail consumers of natural gas supplied to them by the Sui Southern Gas Company. The Appellants operate industrial facilities dependent on natural gas and have contractual agreements for gas supply. The natural gas is employed by some Appellants in their production processes, while others utilize it for electricity generation purposes as well. What sparked the institution of legal proceedings (i.e. Suits) by the Appellants was the issuance of Gas Tariff Notification dated 23.10.2020 by OGRA on the advice of the Federal Government, which was sought to be enforced retrospectively with effect from 1.9.2020. The Impugned Notification, which notified the sale price and minimum charges for natural gas for the Financial Year 2020-21 was challenged by the Appellants as it increased the tariff of natural gas for retail consumers.

A few weeks after institution of Suit 1803, SSGC (and not OGRA) submitted in Court a Notification dated 23.11.2020 containing the prescribed prices for each category of retail consumer. This Notification was issued four (4) months after OGRA’s determination dated 14.7.2020, which according to the Appellants constituted a violation of section 8 of the OGRA Ordinance. The Appellants’ Suits consisted of a diverse array of legal challenges where each Appellant sought to target a different facet of the Impugned Notification.