Friday, June 19, 2015

ERSE demands more support for investment in natural gas – Digital Journal


For the next four years were presented four investment proposed by EDP Gas Distribution, Tagusgás, Sonorgás and Galp Energia (Setgás, Lisboagás, Lusitaniagás, Beiragás, Medigás, Paxgás, Dianagás and Duriensegás), an amount Global 267.4 million euros.

The regulator of the energy market holds that “the information provided by the proposals is very small and inadequate for achieving the desired objectives,” recommending “general review thereof, not only on improving and deepening of information, namely to address the lack of substantiation of investments “.

ERSE also warns about the presentation of unit investment values ​​above the reference values, either in interventions for building / adapting premises of consumers to use natural gas, wants to build networks and stations. “

Individually, the proposal of EDP Gas Distribution, which proposes to make an investment of 128 million over four years (48% of the total) has gaps in the assumptions associated with the regional situation of operation, the existing potential in the concession areas in terms of penetration of natural gas consumption.

“On the other hand , mind that this proposal included also the quantification of the benefits associated with new investment projects, the results of the criteria used in the selection of investments and ultimately present their characterization by investment project, “the opinion of the ERSE not is binding, leaving the last word to the Minister with the power tab.

In the proposed business investment Galp group, amounting to 118 million euros, “the lack of quality information that underlies this plan is more evident than in the other cases. “

” In addition to that there is no economic rationale nationally and regionally, to sustain these plans, proposals of Galp group of operators are meager in relation to the projects themselves, “criticizes the regulator, stressing that” there is no quantification of the benefits associated with new investment projects or the results of the criteria used are shown in the selection of investments. “

operators of gas distribution networks shall submit to the General Directorate for Energy and Geology (DGEG), every two years investment plans in the networks, which in turn uses are communicated to ERSE for the subject to public consultation and issue a opinion which has no binding character.

The plan for 2015-19, amounting to 267 million euros, compared with an investment less than the conducted between 2010-14, that amounted to Euro 396 million, period where demand stagnated.

Since the tariff impact of the proposed investment depends on the “evolution of natural gas demand,” says ERSE, but considering the estimates, should represent a decrease in usage charge network by 5.3% in 2019.

In a conservative scenario, with consumption at current levels, the investment can represent an increase of 1.7% in network usage rate in 2019.

Digital Money with Lusa

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