There are various misleading reports circulating regarding two arbitration awards involving SNGPL and National Power Parks Management Company (Pvt) Limited (NPPMCL). NPPMCL is a wholly owned subsidiary of the Federal Government.
It must be noted that arbitration and awards are private and confidential. A selective and misleading disclosure has been made of part of the awards.
SNGPL will not violate the confidentiality commitment enshrined in the relevant rules; however, it has been constrained to respond given the ongoing speculation.
SNGPL intends to fully explore and avail all legal remedies which are available to it and is consulting with its counsels in this regard.
Under the terms of the license granted to SNGPL by OGRA read with the decision of ECC of the cabinet dated May 11, 2018 and in line with the tariff regime in vogue, the Company after exhausting all the legal remedies available under the law, will take up the matter with OGRA for determining the impact of the awards on revenue requirement of the Company.
Since the relevant awards relate to Take or Pay revenues and since these revenues billed to NPPMCL were earlier offered to OGRA as an operating revenue, therefore, reversal of the same, if any, may not have any material adverse impact on the profitability of the company.
