Executive Summary:
This notification from the Petroleum and Natural Gas Regulatory Board announces the Petroleum and Natural Gas Regulatory Board Determination of Natural Gas Pipeline Tariff Amendment Regulations, 2019. These regulations, effective from the date of publication in the Official Gazette, amend the 2008 regulations concerning the determination of natural gas pipeline tariffs. The key change involves the review of unit natural gas pipeline tariffs, specifying the timing and conditions for such reviews.
Key Points / Main Content:
* **Regulation Title:** Petroleum and Natural Gas Regulatory Board Determination of Natural Gas Pipeline Tariff Amendment Regulations, 2019.
* **Effective Date:** Date of publication in the Official Gazette.
* **Amendment to 2008 Regulations:** The notification amends the Petroleum and Natural Gas Regulatory Board Determination of Natural Gas Pipeline Tariff Regulations, 2008.
* **Tariff Review Definition:**
* Replaces the definition of "tariff review."
* Defines "tariff review" as a review of the unit natural gas pipeline tariff by the Board every five consecutive years.
* The first tariff review is to be done after the end of five consecutive years after the end of the initial unit natural gas pipeline tariff period.
* The tariff determined at any tariff review applies until the next tariff review.
* The gap between two tariff reviews must not be less than two consecutive financial years after the end of the financial year in which the last tariff fixation occurred.
* Tariff review can be done earlier based on provisions of subclause 9 of clause 9 of Schedule A.
* **Schedule A, Clause 9 Amendment:**
* Replaces subclause 4 of clause 9 in Schedule A.
* The adjustment on account of variation in provisional initial unit natural gas pipeline tariff, final initial unit natural gas pipeline tariff, and tariff determined under tariff review shall be made in the DCF calculations.
* The derived tariff shall be charged from the customers on a prospective basis until the next review.
* The tariff shall be applicable from the first day of the month following the month in which the tariff order/zonal tariff is issued by the Board.
Impact Analysis:
* **Natural Gas Pipeline Companies:**
* *Impact:* Affected by the revised regulations concerning tariff review timelines and methodologies.
* *Action Required:* Comply with the new regulations for tariff review and adjustment, including DCF calculations and implementation timelines.
* **Natural Gas Consumers:**
* *Impact:* Affected by the tariff determined based on the revised regulations.
* *Action Required:* Be aware of potential tariff adjustments resulting from the tariff review process.
* **Petroleum and Natural Gas Regulatory Board:**
* *Impact:* Responsible for implementing and overseeing the revised tariff regulations.
* *Action Required:* Enforce the new regulations and conduct tariff reviews as per the revised timelines and procedures.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board: A regulatory body in India responsible for regulating the petroleum and natural gas sector.
Petroleum and Natural Gas Regulatory Board Act, 2006: An Indian legislation that established the Petroleum and Natural Gas Regulatory Board and defines its powers and functions.
New Delhi: The location where the notification was issued. New Delhi, is the capital of India.
Petroleum and Natural Gas Regulatory Board Determination of Natural Gas Pipeline Tariff Amendment Regulations, 2019: The title of the regulations being amended by this notification.
Petroleum and Natural Gas Regulatory Board Determination of Natural Gas Pipeline Tariff Regulations, 2008: The regulations being amended by the current notification.
Official Gazette: The official government publication where new regulations are published in India.
VANDANA SHARMA: The Secretary of the Petroleum and Natural Gas Regulatory Board, as indicated by the signature.
Government of India Press, Ring Road, Mayapuri, New Delhi110064: The printing press responsible for publishing the notification.
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THE PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi, the 27th May, 2019
F.No. PNGRB/COM/2-NGPL Tariff (3)/2019.—In exercise of the powers conferred by section 61 of the
Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board
hereby makes the following regulations, namely: —
1. These regulations may be called the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas
Pipeline Tariff) Amendment Regulations, 2019.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations,
-
2008, —
a. in regulation 2, in sub-regulation (1), for clause (h), the following clause shall be substituted, namely: —
“(h) "tariff review" means the review of the unit natural gas pipeline tariff after every five consecutive years by
the Board with the first tariff review to be done after the end of five consecutive years after the end of the
initial unit natural gas pipeline tariff period as specified under clause (e):
Provided that the unit natural gas pipeline tariff so determined at the time of any tariff review shall
apply for the period up to the next tariff review:
Provided further that the gap between two tariff reviews shall not be less than two consecutive financial
years after the end of the financial year in which last tariff fixation occurred:¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
Provided also that the tariff review can be done earlier in terms of provisions of sub-clause (9) of clause 9 of
Schedule A.”;
b. in Schedule A, in clause 9, for sub-clause (4), the following sub-clause shall be substituted, namely: —
“(4) The adjustment on account of variation in the provisional initial unit natural gas pipeline tariff, final initial unit
natural gas pipeline tariff and tariff determined under tariff review shall be made in the DCF calculations and
the derived tariff shall be charged from the customers on prospective basis till next review, that is, the tariff
shall be applicable from the first day of the month, following the month, in which the tariff order (zonal tariff
in case of applicability of zonal tariff) is issued by the Board.”.
VANDANA SHARMA, Secy.
[Advt. III/4/Exty./62/19]
Foot Note : The Principal regulations were notified vide GSR 807(E), dated 20/11/2008 and amended vide GSR986(E),
dated 20/12/2010, F.No.PNGRB/M(C)/11/Final Tariff Filing, dated 30/05/2012, F.No.PS/Secy./M(C)/2012,
dated 13/09/2012, F.No.PNGRB/M(C)/48, dated 17/02/2014, F.No.PNGRB/M (C)/100, dated 27/02/2014,
F.No. L-MISC/VI/I/2007, dated 01.01.2015 and F.No. PNGRB/M(C)/110, dated 08.01.2016.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.