The Petroleum and Natural Gas Regulatory Board Act, 2006
22. Transportation
tariff.-
1. Subject
to the provisions of this Act, the Board shall lay down, by regulations, the
transportation tariffs for common carriers or contract carriers or city or
local natural gas distribution network and the manner of determining such
tariffs.
2. For
the purposes of sub-section (1), the Board shall be guided by the following,
namely:-
a. the factors which may
encourage competition, efficiency, economic use of the resources, good
performance and optimum investments;
b. safeguard the
consumer interest and at the same time recovery of cost of transportation in a
reasonable manner;
c. the principles
rewarding efficiency in performance;
d. the connected
infrastructure such as compressors, pumps, metering units, storage and the like
connected to the common carriers or contract carriers;
e. benchmarking against
a reference tariff calculated based on cost of service, internal rate of
return, net present value or alternate mode of transport;
f. policy of the Central
Government applicable to common carrier, contract carrier and city or local
distribution natural gas network.