1.6.2012 (UNI) Delhi High Court today upheld that Petroleum and Natural Gas Regulator (PNGRB) has no jurisdiction to fix rates or tariffs and quashed the board's decision to fix network tariff and compression charges of Indraprastha Gas Ltd(IGL).

A bench comprising acting Chief Justice AK Sikri and justice Rajiv Sahai Endlaw held that PNGRB was not empowered to fix or regulate the maximum retail price at which gas is to be sold by IGL and other such entities.

The court also ruled that the board was not empowered to fix any component of network tariff or compression charges for any CGD entity.

The PNGRB, in its April 9, 2012 order had directed IGL, the sole supplier of compressed natural gas in Delhi and NCR to cut down its network tariff by 63 per cent and compression charges by 53 per cent.

In a retrospective decision, it also asked the company to refund the difference to its customers for the period from April 1, 2008 till the date of issuance of order.

IGL had challenged gas regulator's retrospective order to fix its network tariff and compression charges mentioning that PNGRB is not entitled to regulate the price of gas sold by the company and there will be huge financial losses to the company in case of refund or slashing of selling price. UNI