Downstream oil and gas sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has called public consultations on a landmark proposal by gas transmission utility GAIL(India) to allow unified or pooled tariff for seven of its inter-connected cross-country pipelines.
GAIL had said in a recent letter to the regulator it has not been able to earn 12 per cent post-tax return on total capital employed as provided for in the tariff regulations notified by PNGRB due to various factors including volume risk, capital cost issue and transmission loss.
According to the gas utility, the proposal would help rectify problems including high cascading tariffs for far-off customers and provide a level playing field to all customers connected to various LNG terminals apart from reducing discrimination between existing and new customers. However, it stated that the integration should first be introduced at the level of entity and then introduced for all pipelines across-India. Read More…
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