PNGRB criticised for haste in tariff hike for GAIL and RGTIL
The downstream regulator, Petroleum and Natural Gas Regulatory Board, has fixed a higher gas transportation tariffs for two pipelines owned by Gail India and Reliance Gas Transmission & Infrastructure (RGTIL) without public consultations and with undue haste, some members of its board have alleged.
Credit rating agency CARE estimates this tariff structure will help Reliance Gas Transmission to mop up revenue of about Rs 5,400 crore in 2010-11. “The board brushed aside suggestions of some members that consumers should be heard before tariffs are fixed,” an official in the PNGRB said.
Pipeline tariffs are an important part of input costs for consumers of natural gas such as power, steel and fertiliser firms. As a pipeline developer enjoys monopoly, the regulator fixes gas transmission tariffs to protect consumers’ interest.
A member said that the Regulator’s board rejected another suggestion of a member to corroborate private consultants’ validation of companies’ capital expenditure in laying pipelines.
