ALGÁS, a gas distributor in the state of Alagoas, proposed a 94% increase in the natural gas distribution margin in the state, when compared to the value approved for the last tariff cycle (2023/2024). The Public Services Regulatory Agency of the State of Alagoas (Arsal) revised the proposed gross margin value to R$0.6958/m³, representing a more attenuated but still very significant increase of 44% over the value approved in the previous cycle. Today (25th) the deadline for sending contributions for the public consultation on the topic ends. The proposal will be analyzed at a hearing at Arsal, with no set date yet.
If approved, the increase could discourage the consumption of natural gas in the state and, consequently, increase the search for more economically accessible sources, such as substitute fossil fuels, which could compromise sustainability.
According to ABRACE Energia, which represents large consumers of energy and natural gas, the deadline of just 11 working days for sending contributions was insufficient, given the complexity of the topic and the large volume of content sent for analysis. The association requested a postponement of the deadline, so that an in-depth analysis could be carried out, but the request was denied by Arsal.
For Adrianno Lorenzon, director of Natural Gas at ABRACE Energia, the high cost of gas in the state, especially if this adjustment is approved, will cause the effect known as the ‘cycle of death’. “It is important that the distributor realizes that the final cost of the tariff is encouraging the exit of natural gas from the state and that it is necessary to think of different strategies to reduce this value. Otherwise, the gas concession will enter a ‘death cycle’, in which consumers leave the gas market, which reduces volume, which further increases the gross margin and ends up encouraging other consumers to leave, and so on. forward,” he explained.
The review process in public consultation already brings this reality to light. The proposed increase is so high due to the reduction in demand from Algás. It also confirms the contractual provision for calculating the tariff to use 80% of the projected volume as a base.
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