State regulatory agencies challenge Gas Milestone

Last Wednesday (7), the Brazilian Association of Regulatory Agencies (ABAR) published a position against the New Gas Law (PL 4.476/2020). In the text, the entity states that State Regulatory Agencies are in favor of the gas-free market and warns society about "risks to security and local supply brought by the drafting of some specific points of the PL". The bill, also known as "Marco do Gás", has already passed the House and is now being processed in the Senate.

According to ABAR, the transfer of the regulation of the local natural gas marketing service to the Union's competence results in the usurpation of the constitutional authorities of the States.

"It should be noted that the Supreme Federal Court, in the file of Complaint 4.210/SP, has already expressed itself in the sense that, in the natural gas market, the Monopoly of the Union ends where the monopoly of states begins. Of course, there is no way the Union would want to regulate a typically local activity of the natural gas market, marketing, that would enter the state monopoly," the statement said.

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