The Energy Regulatory Commission (Commission), through the powers conferred by the Hydrocarbons Act and the Bylaws of the Activities referred in Title Three of the Hydrocarbons Act, developed the preliminary draft of the General Administrative Provisions that specifies the methodology of Transportation by pipeline and Storage of natural gas tariffs (Preliminary Draft). The Preliminary Draft updates the current regulatory scheme for determining the maximum tariffs for Transportation by pipeline and Storage of natural gas, to a scheme of "Control of Maximum Profitability".
The new regulatory instrument consists of authorizing a Maximum Rate List, based on a maximum limit methodology. That is, the maximum rates used by the permit holder must not exceed this limit. Likewise, this scheme considers an adjustment factor for efficiency from the second five-year period until the end of the permit.
The implementation of the Draft will generate a lower cost of compliance, and fewer barriers to entry, it will update the criteria and methodologies for determining the Maximum Rates.