Library / Natural Gas Pipeline Tariff Regulations Draft: June 10th, 2022 Objective 1. The objective of these Regulations is to establish the tariff methodologies and tariffs for

Natural Gas Pipeline Tariff Regulations Draft: June 10th, 2022 Objective 1. The objective of these Regulations is to establish the tariff methodologies and tariffs for

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(b) 
the classes of capacity charges that should apply; 
 
(c) 
the methodology for determining the reference tariffs, including: 
 
(i) 
the determination of the capital costs or remaining capital costs that 
should be considered; 
(ii) 
how the rate of return should be determined, in terms of a blended 
rate for equity and debt or a rate for equity only, as well as the level of 
profitability that should be considered; 
(iii) 
the duration of the cashflow for which the capital recovery and 
profitability will be determined and the term during which the 
reference tariff shall apply, which may consist of different phases; 
(iv) 
the type of charge that would be applicable after the capital costs have 
been recovered; 
(v) 
the taxes and levies that should be included in the reference tariff 
determination and the methodology for including such taxes and 
levies; 
 
(d) 
the methodology for adjusting the reference tariff to the real tariffs to be 
determined for each calendar year from which the capacity charges for each 
year can be derived; and 
(e)      the inflation indexes to be used for determining the actual capacity charges 
for each year.  
 
Tariffs 
 
11.  (1) Within one month after the Authority has published the various tariff methodologies 
the operators of the existing gas transportation pipelines and gas transportation network 
shall calculate the reference tariffs and real tariffs with respect  to the capacity charges and 
propose the same to the Authority pursuant to section 124 of the Act as well as the initially 
applicable actual capacity charges.  
 
(2) Subsequently, the actual capacity charges shall be calculated prior to the start of each 
calendar year pursuant to the tariff methodology. 
 
(3) With respect to new gas transportation pipelines the tariff methodology shall be applied 
by the operator and the operator shall report the respective tariffs to the Authority. 
 
12.  (1) Following the end of each calendar year the operator shall recalculate the capacity 
charges which should have been charged for that calendar year, taking into account the actual 
performance of shippers in duly paying invoices and the commencement of additional 
transportation of natural gas for new or existing shippers. 
 
(2) The method of adjustment under Regulation 12(1) shall be approved by the Authority. 
  
 
Publication of tariffs 
 
13.  The operators shall publish the respective actual tariffs for each calendar year pursuant 
to Section 124(1)(c) of the Act from which the actual capacity charges can be determined.  
 
 
Interpretations 
 
14.  In addition to the definitions contained in the Petroleum Industry Act, 2021 the following 
definitions shall apply to these Midstream Gas Infrastructure Fund Regulations.  
 
“Act” means Petroleum Industry Act, 2021.