New gas regulation for Rio de Janeiro ready in a few days, says undersecretary

Aug 6, 2019

Rio de Janeiro’s new natural gas regulatory framework is expected to be “fully in place” within a few days, state oil and gas deputy secretary Cristina Pinho said on Monday.

“We have been surgical at some points to make a strong connection with the changes being made by the federal government. In a few days, we will have regulation fully implemented in the state. We are working on a smooth transition plan, ”said Pinho, during an event at FGV Energia in Rio.

In June, the Rio de Janeiro State Energy and Basic Sanitation Regulatory Agency (Agenersa) approved more attractive rules for migrating customers from the regulated to the free environment in Rio. The adoption of regulations that are more favorable to the opening of the energy market.

Naturgy, the Spanish group that controls piped gas distributors CEG and CEG Rio, has filed embargoes against changes to the regulatory framework, claiming that the revised state regulation “hurts the bilateral agreement between the concessionaires and the granting authority.”

Last week, Agenersa held a public meeting to discuss the resources presented by market players.

The new rules make  it easier for free customers, self-importers and self-producers of gas. Among the key changes is the reduction in the minimum volume required for a user to migrate to the free market from the current 100,000 cubic meters per day to the equivalent of 10,000 m3 / day. In practice, it means that more industries are able to migrate from the environment.

Agenersa has also proposed new rules for Naturgy’s compensation. From now on, all free customers will pay a discounted rate – relative to the marketing charges contained in the rate.

“Those who trade do not distribute, those who distribute do not trade,” said the undersecretary.

With regulatory changes, free users who are supplied by dedicated networks built specifically to service their facilities will pay distributors only the operating and maintenance fees commensurate with the investments made in the pipeline in question. Previously, this customer would pay a full fare like any other consumer on the network. Thus, small pipelines specifically built to serve free consumers tend to pay a lower tariff.

The Rio de Janeiro regulatory body will also allow a free consumer, self-importer or self-producer of gas to build their own networks.

Source: Valor

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