Since their construction, these plants –owned by Ancap– have been operated by the Acodike and Riogas distributors based on rental contracts, which also include concepts that regulate the relationship between the supergas distribution actors. These contracts expire in February 2023 and it had already been announced that they would not be renewed under the current conditions.
The tender approved by the Board of Directors was challenged by the supergas distribution companies via an administrative appeal against the decision. “Soon we are going to lift it and we are going to continue with the call. It was a very administrative resource, very formal. We are going to say that all the formalities were fulfilled and that there are no grounds for that appeal”, he had declared last week to The Observer the head of Ancap, Alejandro Stipanicic.
This Tuesday, the chief confirmed in an interview with Radio Carve that the appeal has already been lifted and the bidding process is continuing to sublet the two supergas bottling plants and enter a “new stage” for that business from the next 1st of March.
The official indicated that from January to September, Ancap forfeited revenues of US$73 million for selling supergas below production costs.
The warrant from the Ministry of Industry on the Ursea
The Ministry of Industry, Energy and Mining (MIEM) exhorted, by means of a decreeto the Regulatory Unit for Energy and Water Services (Ursea) to “approve a regulation that will be in force from March 1, 2023, which includes the following aspects regarding the general conditions and principles that must be met in the connections, at least, between supplier and bottlers, and of these with the distributors of the LPG market, including among others:
- Compliance with the principles and rules of free competition in the sector
- Equitable penalty mechanisms for both parties, for breach of contract
- Transparent mechanisms of nomination and allocation of the product by delivery point
- Transparency in payment scheme, invoicing and deadlines
- In particular for packers, the need for the existence of a distribution network, own or accredited through contracts with third parties, should be considered.
In addition, Ursea must have by that date “the maximum intermediate prices for the sale of bottled liquefied petroleum gas to distributors, considering current conditions, without prejudice to the criteria that this decentralized service considers to be reasonably relevant, and without this conditioning the regulation to be considered and approved in the future”.
In addition, the regulator must carry out “a System Efficient Cost Review Study, already define one methodology for calculating the definitive Maximum Intermediate Price and of the efficient distribution margins before December 1, 2024″.
The MIEM also urges the regulator to adjust the regulations related to state control and requalification of micro-bottles and the withdrawal from the market of those not suitable for use.
