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Since 2019, Santa Catarina Has Adopted a Regulated Free Market for Natural Gas. This Allows Consumers to Independently Contract Both the Supply and Transportation of Gas with Their Preferred Suppliers and Transporters. Learn More About Natural Gas in Santa Catarina.
SCGÁS is the distributor responsible for the flow of energy throughout the state and is well-equipped to serve new users in the free market. The price of natural gas was determined by a single supplier.
Previously, fuel prices in all 69 municipalities in Santa Catarina were determined by a single supplier. However, consumers can now negotiate prices directly with fuel suppliers. In this new approach, the service of fuel commercialization is distinguished from the distribution of natural gas, which remains under the jurisdiction of SCGÁS.
According to Resolution ARESC No. 136, the migration of users with a consumption above 10,000 m3/day to the free market is anticipated. This measure, widely reflected in the free electricity market, is part of the federal program called New Gas Market (NMG), which stimulates the opening of dynamic and competitive markets, promotes conditions for lower prices, and contributes to local economic development.
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SC Has Undergone Various Changes in Natural Gas Distribution
The Gas Company of Santa Catarina has made several changes to adapt to this new moment in the market. In October 2021, the Public Services Regulatory Agency (ARESC) approved the Distribution System Use Tariff (TUSD), which establishes the applicable values and conditions for clients wishing to use the electric distribution network, and regulates the application to free market users.
Additionally, SCGÁS already has a draft type contract available for interested parties, which has been submitted to the regulator for analysis and approval.
Still in 2021, the concessionaire created the Gas Supply Management (GEGÁS), a specific area to address supply and transportation contracts. The company regularly announces new public tenders for the acquisition of supplies on its website, thereby promoting the diversification of supply sources and agents.
Another highlight is the installation of a new network monitoring system that includes telemetry to monitor large consumers in real-time and assist future free users. By the end of 2026, SCGÁS will invest approximately R$ 16.8 million in implementing the system to meet the new challenges of the market.
New Challenges for Natural Gas Consumers
For consumers wishing to migrate to the free gas market, several factors must be considered, such as the separation of contracted transportation from contracted molecules, which must be arranged by the user themselves or by a contracted marketer. For the gas industry as a whole, the challenge is to advance and consolidate the changes initiated throughout the chain, from gas production to final consumption, expanding the supply and infrastructure of gas.
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