Minister for the Environment wants to extend sanctioning powers of ERSE

Na letter sent on 28 August to the chairman of the Board of Directors of the Energy Services Regulatory Authority (ERSE), to which Lusa had access, Minister of Environment and Energy, Maria da Graça Carvalho, begins by saying that it is “according to the recommendations” that the supervisor presented to him in a study published on 14 August on the formation and evolution of road fuel prices in Portugal.

Following this initial analysis, the minister asks the ERSE to strengthen “the instruments of transparency, economic supervision and consumer information” by deepening two matters in a manner articulated with the “competent entities”.

One has to do with transparency on pricing, considering that there should be “more clear, coherent and accessible information” for consumers to understand.

“ To this end, the harmonisation of public price benchmarks, the review of the methodology used by the Directorate-General for Energy and Geology (DGEG) in the presentation of discounted prices and the coexistence of Efficient Price, published by ERSE, and the Reference Price, published by ENSE”, writes Maria da Graça Carvalho.

The minister then orders ERSE to deepen “the extension of ERSE’s sanctioning powers to the National Petroleum System in relation to the obligations covered by its regulatory and economic supervision powers, ensuring the protection of all consumers”.

In addition to determining these two tasks, Graça Carvalho asks ERSE to “receive a note identifying the next concrete steps to be taken, their timing and the possible need for additional legislative or regulatory changes, including, where applicable, the elements necessary for the preparation of those amendments”.

In the study requested in July by the minister and released on August 14, ERSE recommends to the government a strengthening of transparency and supervision in the sector, but rejects there being grounds for administrative intervention in prices.

Among the measures identified are the need to “harmonize public price benchmarks and reduce the risk of incorrect interpretations between the efficient price of ERSE and the reference price disclosed by ENSE [National Energy Sector Entity]”.

ERSE further recommends that the Government periodically review the discounted price methodology with the Directorate-General for Energy and Geology (DGEG), including the discounts covered and the weightings used.

The “clear and timely” definition of annual biofuel targets is another of the proposed measures to prevent “different levels of incorporation from creating cost advantages and market distortions that do not result in greater efficiency”.

In addition, it advocates an extension of ERSE’s sanctioning powers to the National Petroleum System, concerning the obligations covered by economic regulation and supervision, to ensure “the protection of all consumers in a harmonious manner regardless of the energy vector used”.

Finally, the study proposes the adoption of “temporary support measures aimed at some specific segments”, such as professional road transport, “if exceptional disturbances persist”, taking into account the role of this activity in the operation of supply chains, in the distribution of goods and in passenger transport.