No brakes on existing city gas firms: Regulator

The Petroleum and Natural Gas Regulatory Board (PNGRB) has clarified that existing city gas distribution (CGD) companies can continue their operations provided they comply with the minimum safety standards the board is notifying separately.

Existing CGD companies can also apply for an interim permission to undertake capital works after submitting applications for authorisation. Gujarat Gas and HPCL, Ahmedabad, have already been granted interim permission, pending a final decision on their applications.

The regulatory body has further stated that the PNGRB Act provides for recognition of authorisation of CGD networks by the Union government prior to the day the new regulations came into force. The board, therefore, has two sets of regulations — one for existing entities authorised by the Union government and the other for those which have not received such authorisation.

The board will decide on the veracity of the authorisations received by existing CGD companies from the Union government and will also subject the existing entities under both sets of regulations to the same terms and conditions to ensure a level-playing field, a fair and competitive market and protection of consumers’ interest.

Also, the board will first decide on existing CGD companies’ objections to the expressions of interest submitted by new entities wishing to start CGD networks and then only start the bidding process.

The board will consider comments of only those existing CGD companies which have applied to the PNGRB under the relevant regulations for authorisation of their operations.

The clarifications are in response to a report published in Business Standard on September 12 (Out in the open: Split within gas regulator on city rights). The BS report was based on informal comments made by the officials of the board and not on what the PNGRB chairman or its member stated at the conference on CGD networks organised by the board jointly with the Confederation of Indian Industry (CII). The error is regretted.