The purpose of this order is to determine fees associated with gas facilities, the remuneration of companies that carry out regulated activities, as well as the determination of related investment and operating costs.
It puts in place a system for the recalculation of gas losses in distribution networks. Assumed losses based on standard loss rates are compared with real losses estimated after distribution. Thus, distributors must calculate the resulting balance, which is then reviewed by the competent authorities and a system is used to pay users in case of a positive balance (i.e. real losses greater then assumed losses) or charge users in case of a negative balance (i.e. real losses lower than assumed losses).
When the annual balance of losses of a transport carrier is negative, the competent authority will value half of the balance, using the annual average price of gas during that year, as additional remuneration for the carrier (fourth final provision).
The percentage of standard losses by facilities are the following.
a) Primary transportation losses: 0.2% of gas inputs to the primary transportation network (from international connections, reservoirs, regasification plants or from other entry points outside the gas system).
b) Distribution losses at pressure equal to or less than 4 bar: 1%.
c) Distribution losses at pressure equal to or less than 4 bar, for networks from satellite plants: 2%.
d) Distribution losses at pressure greater than 4 bar: 0.39% (Article 17). No distribution losses in gas pipelines with a maximum design pressure greater than 16 bar, unless its existence is justified.
This regulation thus provides incentives for the reduction of gas losses in distribution systems and, therefore, lower methane leakage. The incentive to reduce transport losses is reviewed each year to update economic valuations (e.g. price of gas) and to reassess loss rates.