TOLL FEE DETERMINATION FOR GAS TRANSMISSION PIPELINE NETWORK UNDER REGULATED MONOPOLY SYSTEM: CASE STUDY FOR INDONESIA

摘要

The reform of oil and gas sector in Indonesia was marked by the promulgation of Law No.22/2001 replacing the old Law No.8/1971 of oil and gas. Under the new law, the oil and gas sector was unbundled into separate upstream and downstream activities. While the upstream side is still under state monopoly, the downstream business was liberalized and opened for private companies to participate and conduct business which was prohibited under the previous oil and gas law. In the downstream, pipeline business is also liberated but due to its nature, the operation of gas transport service trough pipeline is controlled under regulated monopoly system. The new regulatory body named Badan Pengatur Hilir (BPH) was formed to regulate and supervise enterprises that carry out business in downstream. Through bidding process a company is granted an exclusive right (of monopoly) to operate a trunk of gas transmission line or a specified service area of gas distribution line. The toll-fee for pipeline service is subject to BPH's control to keep all parties in concert. The appropriate toll-fee should be determined in order to let the investors (of pipeline) receive sufficient return meanwhile the customers are protected from high service charge. This paper presents a method of determining the toll-fee for gas transportation service trough pipeline under regulated monopoly system. A hypothetical case is provided for the illustration of the method.