Section 4 in The Petroleum and Natural Gas Regulatory Board (Affiliate Code of Conduct for Entities Engaged in Marketing of Natural Gas and Laying, Building, Operating or Expanding Natural Gas Pipeline) Regulations, 2008
4. Scope of affiliate code of conduct.
(1)The affiliate code of conduct referred to in these regulations and hereinafter referred to as the "code" sets out the manner of the-(a)interactions between the entity and its affiliate for the purposes of carrying out the activities of both transportation and marketing of natural gas based on the principle of "at an arm's length"; or(b)engagement in both the activities of transportation and marketing of natural gas by the entity on its own by following the principle of "at an arm's length".(2)The objectives of this code are to ensure-(a)protection of the interests of the consumers and other entities against the actions of an entity while dealing with its affiliate as also when the entity on its own is engaged in both the activities of transportation and marketing of natural gas;(b)prevention of cross-subsidization of the costs between the regulated activity and any other non-regulated activity including the activity of marketing of natural gas either by the entity on its own or through its affiliate which adversely affects or has the potential of adversely affecting fair trade and competition between the entities;(c)that there is no preferential access allowed by the entity to itself or to its affiliate for the regulated activity; and(d)development of a fair and competitive natural gas market.
