Torrent and Reliance fight GSPL on pipeline tariff

Vol 18, PW 6 (06 Nov 14) Midstream & Downstream

Gujarat gas customers are eagerly awaiting the verdict in a landmark case filed by Torrent Power against Gujarat State Petronet (GSPL) over disputed transportation tariffs.

On November 26, Gujarat High Court chief justice Vijay Manohar Sahai and judge RP Dholaria will decide whether GSPL is right to demand Rs49cr ($8m) in transportation tariffs from Torrent for gas supplied to its Ahmedabad and Surat power stations since 2008. This judgement will set a precedent for similar cases brought against GSPL by other gas customers, explains an Essar source.

Torrent, in its October 13 court petition, complains GSPL sent it bills for the tariff earlier this year without an opportunity to discuss the charges. Torrent is also contesting a PNGRB order issued September 11 (2012) imposing Rs23.99/mmbtu ($0.39) transportation tariff on GCV (Gross Calorific Value) from the date of notification of the tariff regulations on November 20, 2008.

Torrent argues the tariff should apply only from July 27, 2012 - the authorisation date of GSPL’s gas grid - not November 2008. Under the PNGRB order the tariff is valid until March 11, 2026.

Torrent has already paid Rs7cr ($1.14m) to GSPL but the court on October 14 directed it to give an additional interim deposit of Rs20cr ($3.26m) to GSPL till judgment is delivered.

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