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GAIL in trouble-VIII: Uniform tariff is an attempt to retain monopoly, says gas buyers
Jan 04:    GAIL's controversial single tariff mechanism is being seen by the gas major as a way to retain its grip on the pipeline infrastructure in the country.
8It is an attempt to elicit a single window opportunity to elicit a 12% post-tax return on its pipeline investments.
8The gas major claims that its return on investment so far has been far below the normative rate of return needed for pipeline investments
8GAIL has shared a lot of relevant data on return on investment on its major pipelines as well as capacity utilization data along with last three year data on contract quantity and actual volume drawn in its cross-country pipelines to buttress its claim for a single tariff across all pipelines
8"This is just GAIL's way to retain its monopoly over the network, and prevent any action to split up the company into its transmission and trading arms. By claiming a single tariff, it intends to bring in a certain respectability to its transmission monopoly, as also prevent competitors to provide better and more efficient transmission related services. It is trying to kill many birds with one stone," a bulk buyer of gas from GAIL told this website on condition of anonymity.
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