Petroleum & Natural Gas Regul.Board vs Indraprastha Gas Ltd.& Ors

2. The facts which are essential to be adumbrated are that the respondent invoked the jurisdiction under Article 226 of the Constitution assailing the order dated 9.4.2012 issued by the Board under Section 22 of the Act determining the network tariff and compression charges for CNG in respect of Delhi City Gas Distribution (CGD) network of the petitioner at Rs.38.58 per MMBtu and Rs.2.75 per kg. respectively w.e.f. 01.04.2008 and directing the petitioner therein to recover the said network tariff and compression charges for CNG separately through an invoice, without any premium or discount on a non-discriminatory basis and to appropriately reduce the selling price of CNG from the date of issuance of the order. Be it noted, the Board left the modalities and time frame for refund of differential network tariff and the compression charges for CNG recovered by the petitioner therein w.e.f. 1.4.2008 in excess from its consumers to be decided subsequently. The said order was criticized on many a ground. The principal contention was that the Board does not have the power to direct the writ petitioner, the respondent no. 1 herein, while charging its consumers, to disclose the network tariff and the compression charges and also to fix the said network tariff and compression charges in any particular manner.

(v) The Board is not empowered to fix the price at which entities will market or sell the notified petroleum products or natural gas. The MRP is to be fixed by the entity. The Board shall only monitor the prices and take corrective measures to prevent restrictive trade practices by the entities. As regards regulation of the activities of transmission and distribution of petroleum products and natural gas, the Board will oversee access to pipelines and city or local natural gas distribution networks on non-discriminatory, common carrier/contract carrier principle for ensuring a level playing field for all entities. That apart, the concept of allowing capacity in a city or local natural gas distribution network to be used by any third party entity on non-discriminatory common carrier/contract carrier principle shall incetivize emergence of independent marketers of natural gas. Such independent marketers shall enter into transportation contracts with the entity, owning and operating the city or local natural gas distribution network for transportation of their gas. This, in turn, will foster fair trade and competition in marketing amongst entities

Accordingly, the Network Tariff and the Compression Charge for CNG in respect of the Delhi CGD Network of IGL shall be Rs.38.58 per MMBTU and Rs.2.75 per KG respectively with effect from 1st April, 2008.

4.2 As per the provisions of the PNGRB (Authorizing Entities to Lay, Build Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, IGL shall recover the Network Tariff and Compression Charge for CNG separately through an invoice without any premium of discount on a non-discriminatory basis. Further, in conformity with the decision conveyed vide letter dated 23.5.2011 mentioned in para 2.3 above, the difference between the Network Tariff and Compression Charge for CNG submitted by IGL and that determined by the Board as given in the table above would be reflected through appropriate reduction in selling prices from the date of issuance of this Order. The modalities and time frame for refund of differential Network Tariff and the Compression Charge for CNG for the period from 01.4.2008 till the date of issuance of this Order shall be decided and advised by the Board subsequently.”

44. Ex consequenti, we find no substance in this appeal and accordingly the same stands dismissed without any order as to costs.