Alarming Increase in Industrial Gas Tariff
The industrial gas sector in Rio Grande do Sul faces an alarming proposal for a tariff increase. The Gas Company of the State of Rio Grande do Sul (Sulgás) proposes a substantial 63.4% increase for the piped gas distribution service in 2023. If approved, the industrial gas tariff in the state will become the third highest in Brazil starting in the second half of this year.
Public Hearing and Repercussions of the Increase
On May 17, at 9 a.m., the State Agency for the Regulation of Public Services Delegated of Rio Grande do Sul (AGERGS) will hold a public hearing to discuss the proposed adjustment. Adrianno Lorenzon, director of Natural Gas at Abrace Energia, expressed concern about the impact of the increase on competitiveness and gas distribution activities in the state.
Adjustment Proposal and Fiscal Impact
Abrace suggests a more modest adjustment of R$ 0.3578/m³, in contrast to Sulgás’s proposal of R$ 0.6137/m³. According to Lorenzon, Sulgás’s proposal includes a sharp increase due to the value of taxes related to results, which, if excluded from the calculation, would immediately reduce the capital cost by 69%.
-
Artificial Intelligence in CRM: The Practical Guide for B2B Sales in 2026
-
The underground profession that few would face removes fatbergs from London’s sewers before the city faces overflows.
-
Heineken surprises the market by launching a beer with only 97 calories, gluten-free, and specially created to win over a new consumer profile in Brazil.
-
Crewless and capable of spending 16 whole weeks without surfacing, the German drone submarine Greyshark uses hydrogen, carries 17 sensors, and creates underwater maps with a resolution of less than 2 centimeters per pixel, while just six units controlled by a single person can scan the entire Strait of Hormuz in 24 hours.
The Role of Taxes and the Efficiency Issue
The taxes related to results total R$ 138,060,436.00 and, if disregarded, the capital cost would fall to R$ 61,619,470.00. Lorenzon argues that these taxes should only apply to the activities necessary for providing the service and should not be reimbursed through tariff revenue.
Approach to Distributed Volume and Consumer Overcost
Another concern raised is Sulgás’s proposal to consider only 80% of the volume of gas to be distributed. Abrace argues that 100% of the volume should be considered to avoid extraordinary gains for the concessionaire and to encourage efficiency in distribution.
Future Investments and Fiscal Transparency
A final point of controversy is the incorporation of future investments into the capital cost composition of the concessionaire. Abrace considers this abusive, as it encourages investment inefficiency. The association calls for greater transparency in monitoring the concessionaire’s asset base, operating costs, and investment efficiency.

Be the first to react!