ARSESP opens public consultation on criteria for transferring penalties in natural gas tariffs

On July 13, 2020, Arsesp - São Paulo State Sanitation and Energy Regulatory Agency opened Public Consultation 09/2020 (link) to revoke Deliberation 765/2017, which deals with the tariff pass-through of penalties incurred by São Paulo gas distributors.

Arsesp considers that the market has reached maturity and knowledge about the charges, after almost 3 (three) years of the publication of Deliberation 765/2017, although the original forecast for the Adaptation Period was 36 (thirty-six) months counted from the signature of the first supply contract with the obligations of Capacity Charge (CE) and Overrun Gas Price (PGU).

The current draft resolution excludes the concept of QDOR (Actual Optimum Daily Quantity) and the related tolerance percentages of 4% and 3%, respectively for the Adaptation Period and the Maturity Period.

Amends the concept of pass-through penalty, understood as any charge applied by the distributor to its users or its supplier and/or by the supplier to the concessionaire, whenever resulting from divergence between the QDC (Contractual Daily Quantity) or QDP (Programmed Daily Quantity) and the QDR (Withdrawal Daily Quantity), including CE and PGU, except, however, the PGU-2, applicable for volumes exceeding 15% of the QDC or QDP.

Another relevant point of change is that the draft resolution limits the tariff pass-through until December 31, 2022, being restricted to the percentage of 50% for the year 2021 and 25% for the year 2022. This percentage must be applied on the difference between the penalties billed by the supplier to the concessionaire and the penalties billed by the concessionaire to its users or supplier.

As a novelty, there is the possibility of a tariff reduction if the penalties billed by the distributors to their users exceed the penalties billed by the supplier to the distributors.

Contributions should be made in writing and forwarded to made by [email protected] and will be accepted until 6:00 p.m. on August 28, 2020.

The Barcellos Tucunduva Infrastructure and Energy team is at your disposal - [email protected]