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Petroleum and Natural Gas Regulatory Board (Determination of Transportation Rate for CGD and Transportation Rate for CNG) Regulations, 2020
Published vide Notification No. F. No. PNGRB/COM/1-CGD Tariff (1)/2015 (P-2750), dated 23.11.2020
Last Updated 1st December, 2020 [act3747]
(a) "Act" means the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006);
(b) "authorised entity" shall have the meaning as defined in clause (d) of section 2 of the Act;
(c) "Board" means the Petroleum and Natural Gas Regulatory Board;
(d) "entity" shall have the meaning as defined in clause (p) of section 2 of the Act;
(e) "Schedule" means the Schedule to these regulations;
(f) "transportation rate for CGD" shall have the meaning as defined in clause (ic) of sub-regulation (1) of regulation 2 of the Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008;
(g) "transportation rate for CNG" shall have the meaning as defined in clause (id) of sub-regulation (1) of regulation 2 of Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008;
(2) Words and expressions used and not defined in these regulations, but defined in the Act or in the rules or other regulations made thereunder, shall have the meanings respectively assigned to them in the Act, such rules or regulations. 3. Application. - (1) These regulations shall apply to an authorised entity for a geographical area declared as common carrier or contract carrier in terms of Petroleum and Natural Gas Regulatory Board (Guiding Principles for Declaring City or Local Natural Gas Distribution Networks as Common Carrier or Contract Carrier) Regulations, 2020,-(a) whose authorisation granted by the Central Government has been accepted under regulation 17 of the Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Network) Regulations, 2008;
(b) which has been authorised under regulation 18 of the Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Network) Regulations, 2008; and
(c) which has been authorised under section 16 of the Act in pursuance of the policy directive issued by the Central Government under section 42 of the Act;
Provided that these regulations shall apply, immediately on the date of their publication in the Official Gazette, to an entity which has not been granted exclusivity from the purview of common or contract carrier. (2) For the purposes of these regulations, the transportation rate for CGD and transportation rate for CNG for CGD networks authorized under Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008 under bidding route shall be as discovered through bidding. 4. Determination of transportation rate for CGD and transportation rate for CNG and webhosting of information. - (1) An authorised entity to which these regulations apply shall, within five months from the last day of the month in which CGD network has been declared as a common carrier or contract carrier, submit the transportation rate for CGD and transportation rate for CNG computed in accordance with the provisions specified in the schedule for the purpose of determination of such rates by the Board to be applicable during the initial period in accordance with sub-paragraph (1) of paragraph 6 of this Schedule. (2) An authorised entity to which these regulations apply shall, within seven months from the start of the financial year up to which the transportation rates have been determined by the Board, submit the transportation rate for CGD and transportation rate for CNG computed in accordance with the provisions specified in the Schedule for the purpose of determination of such rates by the Board, to be applicable during the subsequent period in accordance with sub clause (1) of para 6 of the Schedule. (3) The authorised entity referred to in sub-regulation (1) or sub-regulation (2) shall, within the period specified therein, submit to the Board such transportation rates as computed by it along with interactive spreadsheet calculation model (including formulae), the duly filled in formats and the statutory auditors certificate as specified in attachment 1 to the Schedule. (4) Based on the submissions of transportation rates by the authorised entity, the Board shall publish a public notice on its website containing a public consultation document for stakeholders' consultation on computation of transportation rate for CGD and transportation rate for CNG along with interactive spreadsheet calculation model (including formulae) the duly filled in formats and the statutory auditors certificate as specified in attachment 1 to this Schedule. (5) Stakeholders may submit their comments in writing within fifteen days from the date of publishing the public notice on the website or such extended period as the Board may decide on a case to case basis. On the expiry of the period provided for stakeholders' comments, the Board shall forward the comments received to the authorised entity concerned for its review and to submit its response within fifteen days. The Board may, if it deems necessary, convene an open house meeting, inviting inter-alia the stakeholders who have submitted their comments and the authorised entity concerned for discussions. The Board shall after completing the aforesaid procedure and considering all the inputs so collected, determine, by order, the transportation rate for CGD and transportation rate for CNG to be applicable during the period specified in sub-clause (1) of para 6 of the Schedule or such other period as may be ordered by the Board and publish the same on its web-site. 5. Defaults. - Without prejudice to the applicability of other provisions of the Act or rules and other regulations made thereunder or any other law which may apply, any default in complying provisions of these regulations shall be liable for civil penalty under section 28 of the Act. 6. Miscellaneous. - If any question arises as to the interpretation of these regulations, the same shall be decided by the Board. 7. Repeal. - Petroleum and Natural Gas Regulatory Board (Determination of Network Tariff for City or Local Natural Gas Distribution Networks and Compression Charge for CNG) Regulations, 2008 is hereby repealed, except as respect things done or omitted to be done under so repealed regulations.Schedule
[See regulation 4]
Methodology for determination of Transportation Rate for CGD and Transportation Rate for CNG (or Transportation Rates): The authorised entity to which these regulations apply shall compute and submit the transportation rate for CGD and transportation rate for CNG in a CGD network based on the principles specified in this Schedule and attachments thereto, by considering the rate of return specified in para 2 of this Schedule, on normative level of capital employed plus the normative level of operating expenses on that CGD network. The expression "normative level" shall be with reference to a level, which is both reasonable and justified in terms of capital and operating expenditure required for efficiently laying, building, operating or expanding that CGD network. 1. Cost and Financial Data. - (1) The entity to which these regulations apply shall compute the weighted average transportation rates considering all technical, operating, financial and cost data of the CGD network based on the audited annual accounts and other technical details and data, for the latest two preceding financial years applicable for the initial period and thereafter considering the latest three preceding financial years for subsequent periods. Computation of such rates shall be certified by the statutory auditors of the authorised entity for latest applicable financial year, in the format specified in Attachment 1(h) to this Schedule. (2) The authorised entity shall prepare separate financial and cost statements in respect of each GA to which these regulations apply and get the same audited by its statutory auditors. The authorised entity shall maintain technical and quantitative data required for computation of the rates separately for each CGD network (including those to which these regulations do not apply) and also for each activity of the authorised entity. Booking, apportionment and allocation of indirect capital and revenue costs to different CGD networks (including those to which these regulations do not apply) and activities shall be carried out in a fair, reasonable and consistent manner, which shall be clearly stated by way of detailed notes. 2. Methodology for determination of transportation rates. - (1) The transportation rates shall be calculated based on the "Cost of Service" [methodology] considering a normative post-tax rate of return of twelve percent on capital employed arrived at in the manner specified in para 3 below. (2) The pre-tax rate of return on capital employed shall be computed by grossing-up twelve percent rate of return by the nominal applicable rate of income tax for corporate assesses as per the provisions of the Income Tax Act, 1961 (43 of 1961). Explanation - For removal of doubt, it is clarified that in case more than one nominal rates of income tax are available as an option to the authorised entity under the law relating to income tax for the time being in force, the lowest of such nominal rates of income tax shall be considered for the purpose of grossing-up the post-tax rate of return of twelve percent for computing pre-tax rate of return on capital employed 3. Computation of Net Fixed Assets and Normative Working Capital. - (1) The Net Fixed Assets in a CGD Network shall be determined separately for -(a) the common infrastructure in the CGD network (that is to say consisting of the pipeline, if any, from the tap-off point in the natural gas pipeline up to the city gate station, city gate distribution network consisting of pipelines, district regulatory station and distribution related equipment and facilities, but excluding CNG compression and dispensation related equipment and facilities) as specified in Attachments 1(a) and 1(c) to this Schedule for determination of the transportation rate for CGD Network;
(b) CNG compressors and equipment between inlet valve to discharge flange, as specified in Attachment 1(b) to this Schedule, required for compression of natural gas into CNG for dispensation in the CNG stations in the CGD network for determination of the transportation rate of CNG;
(c) treatment of an investment in the fixed asset shall be as per the basis indicated in Attachment 2 to this Schedule;
(d) refundable security deposit collected by the CGD entity from the domestic PNG consumers in accordance with the provisions of sub-regulation (1) of regulation 14 of the Petroleum and Natural Gas Regulatory Board (Authorising Entities for Laying, Building, Operating or Expanding City or Local Natural Gas Distribution Networks) Regulations, 2008, which shall be netted off against the capital expenditure;
(e) refundable security deposit collected by CGD entities from non-domestic PNG consumers in accordance with the provisions of sub-regulation (2) of regulation 14 of the Petroleum and Natural Gas Regulatory Board (Authorising Entities for Laying, Building, Operating or Expanding City or Local Natural Gas Distribution Networks) Regulations, 2008, which shall be netted off against the capital expenditure; and
(f) any non-refundable amount charged by the CGD entity from any PNG customer towards connectivity or equipment or installation charges, which shall be netted off from the capital expenditure or the revenue expenditure, as the case may be.
(2) The Net Fixed Assets shall be equal to the Gross Fixed Assets less accumulated depreciation. (3) The Gross Fixed Assets shall be equal to their actual historical cost of acquisition (including the cost of any subsequent replacement or improvement or modification but excluding the component of interest cost on loans capitalised) or that normatively assessed by the Board, whichever is lower, as per the following [basis and principles] that may be considered as required to create an efficient and robust CGD infrastructure, namely:-(a) capital costs in similar projects following the best project management principles and practices, which might have been incurred at the time when the CGD network was laid, built or expanded;
(b) appropriateness of the pipeline design and the operating philosophy with regards to maximum allowable operating pressure;
(c) optimisation of the equipment and facilities (online compressors for CNG compressors, metering systems, SCADA, fire-fighting equipments and like other equipment and facilities) required based on an assessment of the appropriate available technology;
(d) design parameters of the equipment, like, compressors for CNG;
(e) assessment of costs of major equipment in the CGD network - pipelines, online compressors, laying or building costs, project management consultancy, pre-operative expenditure and like other costs;
(4) Normative Working Capital shall be equal to thirty days of normative operating cost (excluding depreciation) and eighteen days' transportation rate receivables. 4. Operating Costs and Depreciation. - (1) [Operating costs] required in the operation and maintenance of -(a) common infrastructure in the CGD network; and
(b) compressor facilities for compressing natural gas into CNG,
shall be computed separately, for the determination of transportation rate for CGD and, for the determination of transportation rate for CNG, on an actual basis or based on a normative assessment by the Board, whichever is lower, over the following cost elements, namely: -(i) consumables;
(ii) utilities (power, fuel and water);
(iii) salaries and wages;
(iv) repairs and maintenance;
(v) insurance premia on fixed assets and on line-pack volume (excluding on the loss of profit);
(vi) administrative overheads (to the extent not classifiable under sub-clauses (i) to (v), related and also commensurate to the level of operations);
(vii) miscellaneous income (realisable from a fixed asset or out of an expense considered as an operating cost), if any, shall be netted out of the operating cost. Interest income, profit or loss on sale or transfer of any fixed or other asset or revenue income realised from transportation rates for CGD and CNG out of the usage of the facilities in the CGD network shall not be considered to be miscellaneous income. (2) Depreciation. - Depreciation on fixed shall be considered in the manner given below, namely:-(a) for pipelines, that is to say that depreciation shall be considered based on useful life of 30 years on SLM basis with residual value of 5%. Where depreciation has been provided in the Audited Books of Accounts in any other manner, depreciation and the corresponding net fixed assets shall be re-casted while determining the transportation rates;
(b) for CNG Compressors, that is to say that depreciation shall be considered based on useful life of 10 years on SLM basis with residual value of 5%. Where depreciation has been provided in the Audited Books of Accounts in any other manner, depreciation and the corresponding net fixed assets shall be re-casted while determining the transportation rates; and
(c) for other assets, that is to say that depreciation shall be considered as per the Audited Books of Accounts.
Note:- Since the cost of land beyond the land for siting CNG compressor as per approved drawings (based on minimum statutory separation distance) and 15% additional land for related equipment and facilities is not considered in return on capital employed for determination of transportation rate for CNG, any land rentals or land lease charges for land beyond the land for siting CNG compressor as per approved drawings (based on minimum statutory separation distance) and 15% additional land for related equipment and facilities shall not be considered as an operating cost for the determination of the transportation rate for CNG.
5. Volumes to be considered in determination of transportation rates. - (1) The volumes to be used as divisor for the purpose of determination of the unit transportation rate for CGD shall be equal to the actual volume of natural gas (including the volume of natural gas transported by pipelines for CNG) transported in the CGD network during the corresponding period. (2) The volumes to be used as divisor for the purpose of determination of the unit transportation rate for CNG shall be equal to actual volume of natural gas compressed as CNG during the corresponding period. 6. Review period for transportation rates. - (1) Transportation rates for the initial period may be applicable for less than or more than three financial years depending upon the month during which the CGD network is declared as common carrier or contract carrier. For subsequent periods, the transportation rates shall be determined and be applicable for a period of three financial years immediately following the initial period. An illustration in this respect is given at Attachment 3 to this Schedule. (2) Notwithstanding anything contrary contained in these regulations, the Board may at anytime revise the transportation rates, including, but not limiting to, the following circumstances, namely:-(i) changes in the applicable nominal rate of income tax used for grossing-up the rate of return on capital employed;
(ii) any unforeseen change in the parameters relating to determination of transportation rates including fixed asset or working capital, operating costs or volumes;
(3) In such circumstances as specified in sub-paragraph (2), the Board may direct the authorised entity to compute and submit the transportation rates to the Board and the authorised entity shall carry out the direction of the Board accordingly and for such revision the provisions of sub-regulation (2) to sub-regulation (5) of regulation 4 shall apply mutatis mutandis.Attachment 1
[See regulation 4]
Financial Year Wise Summary of Ga for Fixed Assets and Depreciation
Name of the Geographical Area ------------------------------------ Name of the Entity ------------------------------------------------ Financial Year -------------------------------------Amount in Rs. lakhs with two decimal places
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Sl. No |
Total Cost |
Rate of Depreciation (%) |
Gross Block at the start of the year |
Addition or deletion during the year |
Gross Block at the end of the year |
Accumulated Depreciation at the start of the year |
Depreciation during the year |
Depreciation on assets deleted during the year |
Accumulated Depreciation at the end of the year |
Net Block at the start of year |
Net Block at the end of year |
Average Net Block for the year |
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(1) |
(2) |
(3) |
(4) |
(5) |
(6) = (4)+(5) |
(7) |
(8) |
(9) |
(10) =(7)+(8)-(9) |
(11)=(4)- (7) |
(12)=(6)-(10) |
(13)= ((11)+(12))/2 |
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a |
City Gate Station [As per Attachment1(a)] |
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b |
Online Compressors for CNG [as per Attachment 1(b)] |
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c |
City Gas Distribution [as per Attachment 1(c)] |
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TOTAL |
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d |
Common Assets (Full details to be given in a separate statement)* |
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e |
Non-Regulated Assets (Full details to be given in a separate statement) |
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f |
Total reconciled with Balance Sheet |
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Notes: 1. Difference in depreciation as per the books of accounts and that as per the basis provided in these regulations to be reconciled separately.
2. (*) Basis of Allocation of Common Assets between various CGD networks, regulated and non-regulated activities and within regulated activities for transportation rate of CGD and transportation rate for CNG shall be shown along-with detailed calculations.
Attachment 1(a)
[see regulation 4]
Financial Year Wise Fixed Assets and Depreciation - City Gate Station
Name of the Geographical Area ------------------------------------ Name of the Entity ------------------------------------------------ Financial Year --------------------------Amount in Rs. lakhs with two decimal places
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Sl. No |
Type of Assets (Depreciation rate wise) |
Rate of Depreciation (%) |
Gross Block at the start of the year |
Gross Block addition or deletion during the year |
Gross Block at the end of the year |
Accumulated Depreciation at the start of the year |
Depreciation during the year |
Depreciation on assets deleted during the year |
Accumulated Depreciation at the end of the year |
Net Block at the start of the year |
Net Block at the end of year |
Average Net Block for the year |
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(1) |
(2) |
(3) |
(4) |
(5) |
(6)= (4)+(5) |
(7) |
(8) |
(9) |
(10)=(7)+(8)- (9) |
(11)= (4)-(7) |
(12)= (6)-(10) |
(13)= ((11)+(12))/2 |
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A |
Land |
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Cost of Land (for siting the CGS only) |
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Area (in Sq Meter or Feet) |
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Rate of Land (Per Sq Meter or Feet) |
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Amount Item -A |
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B |
Building |
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C |
Plant and Machinery |
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D |
All Related Assets |
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E |
Total (A + B + C + D) |
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Notes:
1. Accumulated depreciation and depreciation for the current financial year on assets other than land shall be calculated based on the audited annual accounts.
2. Full details shall be given for each asset in separate sheets.
Attachment 1(b)
[see regulation 4]
Financial Year Wise Fixed Assets and Depreciation - Online Compressors for Cng
Name of the Geographical Area ------------------------------------ Name of the Entity ------------------------------------------------ Financial Year ------------------------------Amount in Rs. lakhs with two decimal places
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Sl. No |
Type of Assets (Depreciation rate wise) |
Rate of Depreciation (%) |
Gross Block at the start of the year |
Gross Block addition or deletion during the year |
Gross Block at the end of the year |
Accumulated Depreciation at the start of the year |
Depreciation during the year |
Depreciation on assets deleted during the year |
Accumulated Depreciation at the end of the year |
Net Block at the start of the year |
Net Block at the end of year |
Average Net Block for the year |
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(1) |
(2) |
(3) |
(4) |
(5) |
(6)= (4)+(5) |
(7) |
(8) |
(9) |
(10)=(7)+(8)- (9) |
(11)= (4)-(7) |
(12)= (6)-(10) |
(13)= ((11)+(12))/2 |
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A |
Land |
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Cost of land (for siting online compressor as per approved drawings and 15% additional land for related equipment and facilities) |
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Area (in Sq Meter or Feet) |
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Rate of Land (Per Sq Meter or Feet) |
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Total – Item A |
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B |
Building |
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C |
Online Compressors |
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D |
Other Plant and Machinery |
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E |
All Related Assets |
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F |
Total (A + B + C + D) |
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Notes:
1. Compressor facilities to be considered shall include the online compressor and equipment between inlet valve to discharge flange.
2. Facilities beyond the discharge valve of the online compressor for CNG, booster compressors in CNG stations and land beyond the land for siting online compressor as per approved drawings (based on minimum statutory separation distance) and 15% additional land for related equipment and facilities shall not be considered for return on capital employed in the determination of transportation rate for CNG.
3. The above cost is to be considered for return on capital employed in the determination of transportation rate for CNG.
4. Accumulated depreciation and depreciation for the current financial year on compressors shall be calculated considering useful life of 10 years on SLM basis with residual value of 5%.
5. Accumulated depreciation and depreciation for the current financial year on assets other than land and compressors shall be calculated based on the audited annual accounts.
6. Full details shall be given for each asset in separate sheets.
Attachment 1(c)
[see regulation 4]
Financial Year Wise Fixed Assets and Depreciation- City Gas Distribution
Name of the Geographical Area ------------------------------------ Name of the Entity ------------------------------------------------ Financial Year -------------------------------------Amount in Rs. lakhs with two decimal places
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Sl. No |
Type of Assets (Depreciation rate wise) |
Rate of Depreciation (%) |
Gross Block at the start of the year |
Gross Block addition or deletion during the year |
Gross Block at the end of the year |
Accumulated Depreciation at the start of the year) |
Depreciation during the year |
Depreciation on assets deleted during the year |
Accumulated Depreciation at the end of the year) |
Net Block at the start of the year |
Net Block at the end of year |
Average Net Block for the year |
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(1) |
(2) |
(3) |
(4) |
(5) |
(6)=(4)+(5) |
(7) |
(8) |
(9) |
(10)=(7)+(8)-(9) |
(11)=(4)-(7) |
(12)=(6)-(10) |
(13)=((11)+(12))/2 |
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A |
Equipment |
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1 |
Pipelines |
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2 |
Cathodic Protection |
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3 |
SCADA |
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4 |
OFC, Telecom and Tele-supervisory system |
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5 |
All Related Assets (details to be given) |
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Sub-total - A |
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B |
Right of way or Right of use |
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C |
Land |
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D |
Line Pack |
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E |
All Related Assets (details to be given) |
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Total (A+B+C+D+E) |
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Note:
1. Pipelines include pipelines for transportation of natural gas to Online Compressor for CNG.
2. Accumulated Depreciation on Pipelines to be calculated considering useful life of 30 years on SLM basis with residual value of 5%.
Attachment 1(d)(i)
[See regulation 4]
Format of Financial Year-wise Operating Cost
Name of the Geographical Area ----------------------------- Name of the Entity ------------------------------------------------ Financial Year ------------------------------------------------------Amount in Rs. Lakhs with two decimal places
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Sr.No. |
Description of cost elements |
CGD (including City Gate station) |
Online compressor for CNG |
Total |
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A |
Variable Cost |
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1 2 |
Consumables |
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Fuel (quantity, rate and value - separately for each fuel) |
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Utilities (quantity, rate and value - separately for each utility) |
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Power |
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Water |
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Any other Expenses (to be specified) |
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Sub-total (A) |
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B |
Fixed or Semi Variable Cost |
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1 2 3 4 |
Salary and Wages |
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General Administration |
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Repairs and Maintenance |
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Any other expenses (to be specified) |
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Sub-total (B) |
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C |
Insurance |
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Total (A+B+C) |
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D |
Miscellaneous Income (D) |
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E |
Operating Cost (A+B+C-D) |
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Notes:
1. For each item of operating cost, detailed calculation to be attached
2. Provide basis of allocation or apportionment of costs over CGD (including City Gate station) and online compressor for CNG for each element of cost.
3. Reconciliation Statement with Profit and Loss account may be separately provided as per Attachment 1(d)(ii).
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Sr. No. |
Description |
Amount in Rs. Lakhs with two decimal places |
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1 |
Total Revenues |
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a |
-Sales (including all taxes) |
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b |
-Revenue from Common or Contract Volumes in Transportation of Gas |
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c |
-Revenue from Common or Contract Volumes in Transportation of CNG |
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d |
-Miscellaneous Income out of Regulated & Non-Regulated Activities as per P&L Account |
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2 |
Cost of Gas Purchased (after stock adjustments) |
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3 |
Total Operating cost for Regulated Activities (*) |
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a |
Consumables and Chemicals |
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b |
Utilities- (Power, Fuel and Water) |
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c |
Salaries and Wages |
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d |
Repair and Maintenance |
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e |
Insurance Premia on Fixed Assets |
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f |
Administrative Overheads |
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g |
Other Expenses |
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4 |
Total Operating, Selling and Distribution and Financial Costs on Non-Regulated Activities |
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5 |
Excise Duty and VAT |
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6 |
Depreciation on Regulated Assets (Difference in book depreciation vs calculated depreciation as per Regulations may be shown separately) |
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7 |
Depreciation on Non-Regulated Assets |
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8 |
Excluded expenses as per Schedule (with full details) |
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9 |
Profit before Tax as per Audited Profit and Loss Account (1-2-3-4-5-6-7-8) |
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(*) Basis of Allocation of Common Costs between Regulated and Non-Regulated Activities shall be indicated along-with detailed calculations. Basis of Allocation of Common Costs within Regulated Activities for Transportation of Gas and CNG to be indicated along-with detailed calculations. |
Attachment 1(e)
[see regulation 4]
Details of Volumes of Natural Gas Transported in Pipeline for CGD and Online Compressor for CNG
|
Sl. No. |
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Preceding Financial Year 1 |
Preceding Financial Year 2 |
Preceding Financial Year 3 |
Total |
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CNG (KG) |
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2 |
CNG (SCM) |
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3 |
CNG (MMBtu) |
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4 |
PNG- Residential (SCM) |
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5 |
PNG- Residential (MMBtu) |
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6 |
PNG- Commercial (SCM) |
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7 |
PNG- Commercial (MMBtu) |
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8 |
PNG- Industrial (SCM) |
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9 |
PNG- Industrial (MMBtu) |
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10 |
Total Volumes (SCM) (2+4+6+8) |
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11 |
Total Volumes (MMBtu) (3+5+7+9) |
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Note: Volumes Reconciliation with Audited Accounts to be provided separately.
Attachment 1(f)
[see regulation 4]
Calculations for Transportation Rate of CGD
Amount in Rs. Lakhs with two decimal places
|
Sl. No. |
Particular |
Preceding Financial Year 1 |
Preceding Financial Year 2 |
Preceding Financial Year 3 |
Total |
|
A. |
Average Net Block (From Column 12 of Attachments 1(a) + 1(c)) |
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B. |
Working Capital |
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C. |
Capital Employed (A+B) |
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D. |
Rate of Return |
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D1. |
Post-tax rate |
12% |
12% |
12% |
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D2. |
Nominal rate of income tax for corporate assesses |
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D3. |
Pre-tax rate of return = 12%/(1-D2) |
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E. |
Return = (C * D3) |
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F. |
Depreciation during the Year (From Column 8 of Attachments 1(a) + 1(c)) |
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G. |
Operating Expenditure (From Attachment 1(d)) |
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H. |
Cost of Service E+F+G) |
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I. |
Annual Volume (in MMBTU) $ (From Sl. No. 11 of Attachment 1(e)) |
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J. |
Transportation Rate (INR/ MMBTU) (H*10^5/I) |
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($) including supply of natural gas by pipeline to online compressors for compressing into CNG.
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Note: For initial period, transportation rate for CGD shall be computed based on preceding two financial years data whereas for subsequent periods transportation rate for CGD shall be computed based on preceding three financial years data. |
Reconciliation of Current and Previous Transportation Rate of CGD
|
Particulars |
INR |
Reasons/Remarks |
|
Transportation Rate (INR or MMBTU) for the current period |
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Details for positive variation in Transportation Rate |
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1. |
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2. .... |
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Details for negative variation in Transportation Rate |
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1. |
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2...... |
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Transportation Rate (INR or MMBTU) for the previous period |
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Attachment 1(g)
[See regulation 4]
Calculations for Transportation Rate of CNG
Amount in Rs. Lakhs with two decimal places
|
Sl. No. |
Particular |
Financial Year 1 |
Financial Year 2 |
Financial Year 3 |
Total |
|
A. |
Average Net Block (From Column 12 of Attachment 1(b)) |
|
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|
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B. |
Working Capital |
|
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C. |
Capital Employed (A+B) |
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D. |
Rate of Return |
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D1. |
Post-tax rate |
12% |
12% |
12% |
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D2. |
Nominal rate of income tax for corporate assesses |
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D3 |
Pre-tax rate of return = 12%/(1-D2) |
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E |
Return = (C* D3) |
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F |
Depreciation during the Year (From Column 8 of Attachment 1(b)) |
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G |
Operating Expenditure (From Attachment 1(d)) |
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H |
Cost of Service (G)= (E+F+G) |
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I |
Annual Volume (in Kilogram) (From Sl. No. 1 of Attachment 1(e)) |
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J |
Transportation Rate (INR/Kilogram) (G*10^5/H) |
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(#) Supply of natural gas to online compressors for CNG
Note:
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1. For removal of doubt, it is clarified that any entity using the CGD network for transportation of its gas as well as using online compressor facilities for compressing its gas for its CNG station(s) shall have to pay both transportation rate for CGD as well as transportation rate for CNG. |
|
2. For initial period, transportation rate for CNG shall be computed based on preceding two financial years data whereas for subsequent periods transportation rate for CNG shall be computed based on preceding three financial years data. |
Reconciliation of Current and Previous Transportation Rate of CNG
|
Particulars |
INR |
Reasons or Remarks |
|
Transportation Rate (INR or KG) for the current period |
|
|
|
Details for positive variation in Transportation Rate |
|
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1. |
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2. .... |
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Details for negative variation in Transportation Rate |
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1. |
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2...... |
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Transportation Rate (INR/KG) for the previous period |
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Attachment 1(h)
[see regulation 4]
Format of Statutory Auditor's Certificate
1. I/ we certify that I/ we have examined the books of accounts and cost accounts of ------- Limited [insert the name of the authorised entity] which is the authorised entity to lay, build, operate or expand city or local natural gas distribution network of ---------- [insert the exact name and unique id. of the geographical area] in respect of ---------- financial years. I/we have reviewed technical and quantitative data required for determination of the Transportation Rate for CGD and Transportation Rate for CNG to the extent not available in the books of accounts. We certify that Format nos. Attachment 1 and Attachments 1(a) to 1(g) to the Schedule attached with this certificate have been correctly drawn from such books of accounts, cost accounts, and technical and quantitative data and are in accordance with the provisions of the Petroleum and Natural Gas Regulatory Board (Determination of Transportation rate for CGD and Transportation rate for CNG) Regulations, 2020. 2. Based on our examination and review as stated in paragraph 1 above, we certify that the calculations for unit Weighted Average Transportation Rate for CGD of Rs....per MMBTU and Transportation Rate for CNG of Rs..../Kg as per the format given in Attachment 1(f) to the Schedule and Attachment 1(g) to the Schedule respectively, are-(i) based on the financial, cost, technical and quantitative data extracted from the audited accounts, cost accounts, technical and quantitative data of the company for the financial years ............. to ............. ; and
(ii) in compliance with the provisions of the Petroleum and Natural Gas Regulatory Board (Determination of Transportation rate for CGD and Transportation rate for CNG) Regulations, 2020.
3. I/ We further certify that the basis of booking, apportionment and allocation of capital and operating cost to various activities of the company, to various CGD networks and to CGD and CNG activities within a CGD network is fair, reasonable and consistent and are in accordance with sound principles of cost accounting. Name of the Firm Chartered Accountant Firm's Registration No Sign with Seal Name of the Partner Chartered Accountant Membership No. UDIN: (Unique Document Identification Number) Place: Date:Attachment 2
[see regulation 4]
Definition of a fixed asset and treatment in the determination of transportation rates for CGD and CNG
The basis of considering fixed assets in a CGD network (including compressors and related equipments) shall be as per the following norms, namely:- (1) A fixed asset in a CGD network is a tangible asset having a useful operating life of more than one year and is integral to the generation of revenues through transportation rates for CGD and CNG. Investment in securities, goodwill, current assets, accumulated loss not written-off, work-in-progress and like other matters are not fixed assets. (2) Any change in the historical cost of the fixed asset due to revaluation or capitalisation of losses shall not be considered. The fixed assets considered at the time of initial fixation of transportation rates for CGD and CNG shall constitute the opening Regulatory Asset Base (RAB) which shall be frozen and only the cost incurred in additions, improvements, modification, replacement of any fixed asset or deletions thereof shall be considered for updating such Regulatory Asset Base (RAB). Details of additions and deletions year-wise have to be provided in the formats specified under Attachment-1 to this Schedule. (3) Fixed asset declared as commissioned but not deployed in operations of the CGD network shall not be considered. (4) Treatment of line-pack volume in pipelines in a CGD network shall be as per the procedure indicated below, namely:-(a) assessment of the volume of natural gas required as Line pack in the pipelines as and when commissioned in the CGD network shall be as specified in the relevant regulations for technical standards and specifications, including safety standards. In case of addition of new pipelines in CGD network, assessment of the additional volume of natural gas required as line pack in the new pipelines as and when commissioned in the CGD network, which shall be as specified in the relevant regulations for technical standards and specifications, including safety standards;
(b) the line pack value of natural gas in pipelines in a CGD network shall be considered as a nondepreciating fixed asset and shall remain fixed over the economic life of the project; and
(c) the value of the line-pack volume shall be derived by multiplying the volume of line-pack by the average cost of natural gas at the CGS station at the time of commissioning of the pipeline(s) or at the time of commissioning of new pipeline in the CGD network, as the case may be.
Attachment 3
[see regulation 4]
Applicable periods of transportation rates and the data relevant for those applicable periods-Illustration Rate Determination for Initial Period|
CGD Entity declared as Common carrier during |
Latest Financial Year for which Audited Data are Available |
Relevant two Financial years |
Submission of Transportation Rates by Entity to PNGRB by |
Webhosting of Rates by PNGRB by |
Initial period for which rates are applicable |
Nos. of months |
|
April, 2021 |
FY 2019-20 |
FY 2018-19 and FY 2019-20 |
30th September, 2021 |
31st December, 2021 |
1st January, 2022 to 31st March 2025 |
39 |
|
May, 2021 |
FY 2019-20 |
FY 2018-19 and FY 2019-20 |
31st October, 2021 |
31st January, 2022 |
1st February, 2022 to 31st March 2025 |
38 |
|
June, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
30th November, 2021 |
28th February, 2022 |
1st March, 2022 to 31st March 2025 |
37 |
|
July, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
31st December, 2021 |
31st March, 2022 |
1st April, 2022 to 31st March 2025 |
36 |
|
August, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
31st January, 2022 |
30th April, 2022 |
1st May, 2022 to 31st March 2025 |
35 |
|
September, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
28th February, 2022 |
31st May, 2022 |
1st June, 2022 to 31st March 2025 |
34 |
|
October, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
31st March, 2022 |
30th June, 2022 |
1st July 2022 to 31st March, 2025 |
33 |
|
November, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
30th April, 2022 |
31st July, 2022 |
1st August,2022 to 31st March, 2025 |
32 |
|
December, 2021 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
31st May, 2022 |
31st August, 2022 |
1st September, 2022 to 31st March, 2025 |
31 |
|
January, 2022 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
30th June, 2022 |
30th September, 2022 |
1st October, 2022 to 31st March, 2025 |
30 |
|
February, 2022 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
31st July, 2022 |
31st October, 2022 |
1st November,2022 to 31st March, 2025 |
29 |
|
March, 2022 |
FY 2020-21 |
FY 2019-20 and FY 2020-21 |
31st August, 2022 |
30th November, 2022 |
1st December,2023 to 31st March,2025 |
28 |
|
Availability of audited data to entity by |
Latest Financial year Audited Data Available |
Relevant three Financial years |
Submission of Rates by Entity by |
Webhosting of Rates by PNGRB |
Period for which rates are applicable |
|
1st June, 2024 |
FY 2023-24 |
FY 2021-22, FY 2022-23 and FY 2023-24 |
31st October,2024 |
31st January,2025 |
1st April, 2025 to 31st March 2028 |
|
1st June , 2027 |
FY 2026-27 |
FY 2024-25, FY 2025-26 and FY 2026-27 |
31st October,2027 |
31st January,2028 |
1st April, 2028 to 31st March 2031 |
