São Paulo advances in RELIVRE with improved natural gas regulation
The regulatory improvement introduced by the passing of Deliberation No. 1485/23 allowed the state of São Paulo to advance in the Free Gas Market Ranking (RELIVRE), coordinated by the Brazilian Oil and Gas Institute (IBP), ABRACE Energia, an association representing major energy consumers, and the Association of Independent Oil Producers (ABPIP).
The RELIVRE members took part in the entire process of improving the rule on opening the gas market, from the Public Contributions Form to the Public Consultation of the São Paulo State Public Services Regulatory Agency (ARSESP). We emphasize that the Regulatory Agency has conducted the whole process clearly and objectively.
We would also like to highlight the work carried out by the São Paulo State Government, through the Secretariat for the Environment, Infrastructure and Logistics (SEMIL), which is sparing no effort to implement the most successful practices of the Free Gas Market in São Paulo, by maintaining an intense dialogue with the sector, in a broad and unrestricted manner.
IBP’s executive director for natural gas, Sylvie D’Apote, highlights RELIVRE’s partnership with state governments to move the country’s gas market forward. “The involvement of the São Paulo state secretariat and ARSESP, seeking to develop new standards and bring greater dynamism to the natural gas market in the country’s largest consumer hub, is a great sign for those of us working to expand the supply of this product, which is so strategic for the economy, industry and the energy transition,” she said.
According to Adrianno Lorenzon, director of natural gas at ABRACE Energia, “it’s a step forward, an improvement, it makes some of the requirements that the previous regulation imposed more flexible. But still, especially when it comes to the main industrial market for natural gas, we believe that further updates are still needed in regulating free consumers so that this market can actually take off in São Paulo”.
Anabal Santos Jr, president of ABPIP, points out that due to the importance and relevance of state legislation for the consolidation of the free gas market, “every advance is very important, especially in the case of São Paulo, due to the size of the market and the potential volumes already used in the state. The changes are very welcome. We also believe that further advances can be made, and we recognize ARSESP’s efforts to change its framework towards an initiative to strengthen the Free Gas Market.”
The changes presented led the state of São Paulo to jump from 18th place (37.4%) to 13th place (44.6%) in the RELIVRE update in January of this year. ARSESP’s resolution 1.485/2023 was a key milestone that brought important advances, such as:
– Inclusion of the Operational Agreement as a contractual instrument that establishes procedures for the flow of operational information, operational rules between agents and responsibilities;
– Revoking the need to establish a branch in São Paulo and the need for evidence of minimum capital to obtain the Trader’s Authorization;
– Exclusion of some provisions for the management of gas purchase and sale contracts;
– Reduction to three months of the maximum period for returning to the regulated market and establishment, in cases of simultaneous contracting in the regulated and free markets, of the absence of a deadline for total migration to the free market.
About the RELIVRE
The Free Gas Market Ranking (RELIVRE) is a tool for monitoring state regulations in the free natural gas market. Developed by agents from different segments of the chain: producers (IBP and ABIPIP) and major consumers (ABRACE), it highlights the regulatory aspects in each state that are most relevant to the effective opening of the natural gas market. RELIVRE’s purpose is to encourage regulatory enhancement in the states, offering suggestions for improvement and enabling comparisons with other regulatory standards.
Follow the evolution of the ranking on the website link.