Dom estic users of piped natural gas (PNG) would be first on the priority list of customers for supply of natural gas followed by essential services such as hospitals. Users of compressed natural gas (CNG), that are largely automobiles, and other consumers connected through the city gas distribution network, including commercial establishments like restaurants, will be last in the priority. CNG is cheaper than LPG in markets such as Mumbai and Delhi. The Petroleum and Natural Gas Regulatory Board drew up the priority list as part of guidelines notified for city gas distribution network (CGD). The priority order would be followed in the case of disruption or interruption in the CGD network. However, the guidelines do not say anything on the consumer price. PNGRB in a statement said city gas distribution projects in some 250 cities would be awarded on the basis of network tariff, CNG compression charge, the proposed length of pipeline and the number of households to be covered. The regulator also laid down the criteria for companies to bid for retailing PNG and CNG to vehicles but some industry players say the parameters defined do not keep consumer interest in mind and put gas producers, like Reliance Industries Ltd and BG India, at an advantage compared to those who do not have natural gas but might be only suppliers. Network tariff would have 40 per cent weightage while CNG compression cost would have 10 per cent weightage during the bidding process to win a city. The notification of guidelines would open up the doors for more players in the CGD business that is currently dominated by Indraprastha Gas Ltd in New Delhi, Mahanagar Gas Ltd in Mumbai and Gujarat Gas in parts of Gujarat. The dominance of these players might, however, end in three years time from the issue of authorisation letter by the board since according to the guidelines they are already operating the CGD network for three years. In case of other companies that have been in operation for less than three years or would start operations, the exclusivity period would end in five years. The tariff would be determined using the discounted cash flow methodology and the rate of return on capital employed shall be 14 per cent post-tax.