Section 9 in Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008
9. Determination of initial unit natural gas pipeline tariff and review of unit natural gas pipeline tariff. - (1) The unit natural gas pipeline tariff shall be determined for the natural gas pipeline over its economic life and levelized during-
(a)the period applicable for the initial unit natural gas pipeline tariff;(b)the period of five consecutive years after the end of the initial unit natural gas pipeline tariff; and(c)the period between any two consecutive tariff reviews.(2)The initial unit natural gas pipeline tariff including its apportioning over all tariff zones shall be determined based on provisional computations.(3)The final computations in respect of the initial unit natural gas pipeline tariff shall be made considering the adjustments required for-(a)the actual capital and operating costs or that normatively assessed by the Board, whichever is lower as specified under clause 4 and clause 5;(b)volume consideration as per item (a) of sub-clause (1) of clause 6; and(c)volume conversion into its energy equivalence as per item (b) of sub-clause (2) of clause 6.(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.] [Substituted by Notification F.No. PNGRB/COM/2-NGPL Tariff (3)/2019, dated 27.5.2019 (w.e.f. 20.11.2008).](5)The final unit natural gas pipeline tariff as specified under sub-clause (3) shall apply for the period upto the first tariff review until the time the same is revised by the Board;(6)The entity shall submit for Board's approval the data for determination of the unit natural gas pipeline tariff after the notification of these regulations in the form and time frame specified under regulation 5 alongwith the provisional computations of the initial unit natural gas pipeline tariff including the apportioning of the same over all tariff zones;Provided that the final computations of the initial unit natural gas pipeline tariff including apportioning of the same over all tariff zones shall be submitted three months before the last date of the period applicable for the initial unit natural gas pipeline tariff.(7)The entity shall submit computation of the unit natural gas pipeline tariff including apportioning of the same over all tariff zones in the form specified under regulation 5 at the time of each tariff review within three months of the-(a)end of the last year of the five consecutive years after the initial unit natural gas pipeline tariff; or-(b)end of the preceding tariff review period:Provided that the computation shall consider the actual cost, financial and operational data or that normatively assessed by the Board, whichever is lesser as per clauses 4 and 5 in respect of the period specified under sub-clause (a) or (b), as the case may be.(8)Adjustments on account of the following variations during the five consecutive years after the initial unit natural gas pipeline tariff or any tariff review shall be made in the DCF calculations on a prospective basis by considering the remaining period of the economic life of the project, namely:-(a)the variations on account of the actual performance with respect to the capital and operating costs which when compared with the normative parameters identified under clauses 4 and 5;(b)the variations in respect of the volumes under Explanation to sub-item (ii) of sub-clause (1) of clause 6; and(c)the variations in the energy equivalence under sub-clause (2) to clause 6.(9)The Board may, either on its own or on the entity's request, carry out a review of the unit natural gas pipeline tariff any time between two tariff reviews, as the case may be, considering-(i)applicable nominal rate of income tax used for grossing-up the rate of return on capital employed;(ii)sudden change in any parameter used in the determination of the unit natural gas pipeline tariff.(10)The provisional and final initial unit natural gas pipeline tariff, unit natural gas pipeline tariff for the period of five consecutive financial years after the initial unit natural gas pipeline tariff and the unit natural gas pipeline tariff fixed after any tariff review thereafter shall continue to apply till the time the same is revised by the Board.
