Regulatory Regime comprises of:
Under the existing pricing and regulatory regimes, following operating conditions have been laid down:
- Allocation of gas from different sources is made by GOP while the wellhead prices are fixed by the OGRA per Petroleum Concession Agreements/contracts.
- Consumer selling price including sales to major consumers (i.e. power, fertilizers etc) are notified by the GOP/OGRA.
- SNGPL is guaranteed a rate of return @ 17.5% on its net fixed assets in operation (ROA) for meeting financial charges, taxation and a reasonable return to the shareholders.
- The prescribed price i.e. the price which the company is allowed to retain out of consumers selling price to meet the covenanted rate of return, is determined by OGRA.