Consumers may soon get to chose piped gas suppliers

Consumers may soon get to chose piped gas suppliers

In yet another reform initiative in the oil and gas sector, the government is set to throw open city gas distribution (CGD) networks across the country to competition, allowing participation of more than one player in a circle vying to attract consumers.

“We have finalised regulations on allowing competition in CGD areas that will be notified in next seven to 10 days,” Petroleum and Natural Gas and Regulatory Board (PNGRB) Chairman D.K. Sarraf told IANS.

“The process of having more players in an area can start soon thereafter as the High Court has not issued any stay on petitions filed against ending the exclusivity period in existing CGD areas,” he added.

Under the bids invited for various CGD rounds, the winner entities are given exclusivity over development of infrastructure and building consumer base for a period upto three to five years.

Post this period, the regulations provide that incumbents may offer their infrastructure to third parties on common carrier principle for supply of natural gas to consumers who opts for a different gas supplier.

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