Warring Essar/GSPL in gas tariff ceasefire

Vol 18, PW 26 (27 Aug 15) News in Brief

Gujarat State Petronet (GSPL) has been instructed by the PNGRB in a 12-page order on August 12 to wait before making any further moves to recover Rs29.18cr ($4.44m) in gas transmission charges from Essar Power.

The PNGRB wants to wait for a verdict in a Supreme Court case where GAIL has challenged its model Gas Transmission Agreement (GTA) guidelines issued in 2012, before it decides on GSPL’s case against Essar. “The outcome of that GTA case will have a bearing on the complaint filed by Essar against GSPL with PNGRB,” we hear.

Responding to the latest application filed by Essar on May 11, 2015, the PNGRB on August 12 asked GSPL not to take “coercive steps to enforce payments for invoices raised.” Essar was also asked to maintain its Letter of Credit.

From March 1, 2013, Essar stopped receiving D6 gas at its Hazira power station but GSPL continued to raise invoices. Essar appealed to the Gujarat High Court but on June 10, 2015 judges threw the case back to the PNGRB.

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