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Legal recommendation on competition advocacy regarding the draft resolution of the Commission of Energy and Gas Regulation

20 Noviembre, 2020

The objective of this draft resolution is to implement a transmission capacity commercialization scheme that allows for the efficient and timely allocation of transmission capacity.

On September 22, 2020, the Deputy Superintendence for Competition Protection of the Superintendence of Industry and Commerce (SIC), in accordance with the provision established in Article 7 of Law 1340 of 2009, issued a LEGAL RECOMMENDATION ON COMPETITION ADVOCACY in relation to the draft resolution "By which provisions are established on the marketing of transmission capacity in the wholesale market for natural gas" designed by the Commission OF ENERGY AND GAS REGULATION 
 - CREG.

The objective of this draft resolution is to implement a transmission capacity commercialization scheme that allows for the efficient and timely allocation of transmission capacity. The purpose of this is to improve the availability and quality of information in the market for natural gas transported by pipeline, which would result in an orderly, efficient and agile allocation mechanism. 

The SIC issued an opinion, among other topics, regarding the producers' participation in the primary market; the proposed mechanism for the allocation of quarterly rounds; the marketing by using futures or swaps contracts; the allocation of transport capacity for projects included in the Natural Gas Supply Plan - PAG; and, the establishment of a maximum price for secondary market transactions.

The legal recommendation issued can be consulted by following this link. 
https://www.sic.gov.co/abogacia-de-la-competencia