The Petroleum and Natural Gas Regulatory Board (PNGRB) has issued draft regulations for the determination of transportation rate for city gas distribution (CGD) and compressed natural gas (CNG).
These regulations will apply, immediately at the end of the period of exclusivity from the purview of common or contract carrier pursuant to PNGRB. Accordingly, they will be applied to those entities whose authorisation granted by the central government has been accepted under Regulation 17, Regulation 18 and Section 16 of the Petroleum and Natural Gas Regulatory Board (authorising entities to lay, build, operate or expand city or local natural gas distribution network) Regulations, 2008.
Determination of transportation rate for CGD and transportation rate for CNG and web-hosting of information:
- An authorised entity to which these regulations apply will, within 90 days of the these regulations coming into force or within 90 days of declaring a CGD network as a common carrier or contract carrier whichever is later, determine in accordance with the provisions specified in the schedule, the transportation rate for CGD and transportation rate for CNG, which rates will be applicable for the period.
- An authorised entity to which these regulations apply will, within 180 days of the close of every subsequent financial year, determine in accordance with the provisions specified in the schedule, the transportation rate for CGD and transportation rate for CNG, which rates will be applicable for the period.
- Any entity not satisfied with the rates determined may file a complaint to PNGRB. The board may examine the complaint under the extant provisions of the Act and the relevant regulations made thereunder and pass such order as it may deem fit. Pending Board’s decision on the complaint, the rates so determined will apply.
- Unless otherwise ordered by PNGRB, the financial adjustment on account of change in the transportation rate for CGD or transportation rate for CNG will be carried out while determining the transportation rate for CGD or transportation rate for CNG for the year subsequent to board’s order.
In order to finalise these regulations, PNGRB would conduct an ‘open house’ with the entities/other stakeholders, including those who have submitted their comments, on October 16, 2020 through video conferencing.