The Energy Regulatory Commission (CRE) approved this Thursday the project that establishes the regulation of maximum sale prices of LP gas for end users.
In an extraordinary session he gave the green light to said regulation, this in compliance with the emergency guideline for the well-being of the LP gas consumer issued yesterday by the Ministry of Energy (Sener) commanded by Rocío Nahle.
The project that contains the methodology to determine the maximum prices is already in the National Commission for Regulatory Improvement (Conamer).
In record time, the agencies have accelerated the process to cap prices following the instruction of an emergency measure from the Sener.
The methodology that will be applied is the one that was used until before the release of the prices, it is observed in the document that the CRE sent to Conamer.
Also read: Sener asks the CRE to set a limit to the price of LP gas
The CRE will use the 145 price regions that conform to the current municipalities, established by the Ministry of Economy, “which were used until December 31, 2016 in setting maximum prices to the end user.”
The justification of the energy regulator headed by Leopoldo Vicente Melchi is that the structure of the supply of LP gas at the national level has changed marginally.
However, it specifies that these regions may be modified based on the changes and adjustments observed in the LP gas market as a result of the monitoring carried out by the CRE, mainly those that occur in the segment of sales to the end user, serving preferably to the residential sector.
Among what is determined in the general criteria is the following: each region will have a maximum price applicable to sales of LP gas to the end user, the differentiation of the maximum price will be based on the sales costs associated with each region.
The ceiling prices will be determined by means of a formula and the CRE will determine the maximum applicable prices.
Likewise, it details that the calculation of the maximum prices of LP gas to the end user by region, will be carried out through a cost model, which considers sales, investments, operation and maintenance costs of the permit holders, as well as logistics, the margin of marketing and one of utility.
The CRE will publish the maximum prices to the end user by electronic means, every Saturday, and the beginning of the term will be from Sunday until the following Saturday, for each of the regions and for each of the municipalities that comprise them.
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Companies that do not comply with the maximum prices established may be eligible for the revocation of their permit.
This project agreement that is in Conamer will enter into force once it is published in the Official Gazette of the Federation (DOF), but it also indicates that this administrative act may be challenged through the indirect amparo trial.
The specific objectives of the regulation are: the protection of end users, by mitigating increases in LP gas prices, promoting an efficient supply at affordable costs, reflecting market conditions in prices and obtaining a margin that allows the cost recovery from marketers, distributors and retailers for the efficient development of the industry.
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