The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed unified tariff regulations, benefitting the consumers located away from the natural gas sources. Accordingly, PNGRB has proposed a cross-subsidation of consumers located away from the gas natural sources by the ones located near the gas sources. This is expected to benefit consumers in places like Delhi as they would not be paying considerably higher natural gas transport costs.
Essentially, the draft regulations has proposed pooling of the existing approved pipeline tariff of the pipelines comprising of the National Gas Grid to arrive at one single tariff to be charged across the pipelines, which will be called the unified pipeline tariff.
As per the regulations, the entire network would be divided into two zones – Zone 1 (extending till 300 km from the point of injection of natural gas in the national gas grid from either end i.e. Western or Eastern end of the grid) and Zone 2 (the entire length after Zone 1). The tariff paid by the consumers in each of the zone will be a uniform single tariff irrespective of the location. Further, the regulations would remain revenue neutral for the gas pipeline operators, though there will be redistribution of the transmission tariffs being paid by the consumers post the implementation of these regulations.