Work on to simplify gas transmission costs

Vol 23, PW 5 (16 Jan 20) News in Brief

Long overdue, the PNGRB has begun work to streamline gas pipeline transmission tariffs to meet the government's target to increase the share of gas in India’s energy basket from 6% to 15% in 10 years.

On January 6, the PNGRB organised a pre-bid in Delhi attended by consultants including KPMG, Deloitte, CRISIL and SBI Caps after floating a tender for the "Appointment of (a) Consultant for (the) Rationalisation of (India's) Natural Gas Pipeline Tariff Structure’ on December 27 (2019). "Work will be divided into three phases," says a source.

In Phase-1, the consultant will study "international (best) practice" in Australia, Japan, Russia, USA, UK and EU countries to identify the best tariff mechanism for India. In Phase-II, a public consultation will result in a final report from the consultant with a proposed new tariff model, draft regulations and possible amendments to existing regulations.

In Phase-3, the consultant will develop an IT platform complete with software and oversee its operation for a year. Whoever wins will have nine weeks from award to submit the Phase-1 report and another eight weeks for Phase-2.

The new bid deadline is January 28 (2020).