One of the considerations to be included in the new rules is a intermediate price to which the National Administration of Fuels, Alcohol and Portland (Ancap)which has a monopoly on supergas production, will sell to the distribution companies.
In addition to this, government sources commented on the intentions that the changes for next year eliminate the “crossed” agreements between Ancap and Acodike and Riogasthe two main companies in the sector, which they have more than 30% of the Uruguayan market each. According to the administration of Luis Lacalle Pouthese agreements operate as a disincentive for competition between companies.
The first step in this direction was to withdraw the state company as regulator of the sector and put Ursea in its place. The next thing on the government map is to have a new regulation that also modifies the conditions of leasing of packaging plants.
Business and union rejection
Faced with the announcement of the changes, the companies rejected the reform of the supergas market, arguing that it opens the market to the possibility that a foreign companywithout making investments in the national sector, win one of the two tenders that are underway today.
They added that the bidding processes for the two The Table will be carried out without knowing the new regulatory framework of Ursea, and that the terms proposed for the lease —five and eight years— do not allow the investments required by the market to be made.
The supergas bottling and distribution business sector disbelieves the government’s discourse on improving the prices for the final consumer based on greater competition between the companies, and rejected the idea that the current contracts favor the distribution companies.
For his part, the Single Union of Supergas Workers (SUTS) echoed the business objection and demanded the Ministry of Industry, Energy and Mining (MIEM) a compromise on the future of the 5,300 current jobsas well as outsourced and informal.
Although the SUTS considers that the sector can have improvements in regulation, it also understands that the government’s plan generates uncertainty for workers. Likewise, it aspires to be able to raise its proposals on the working and safety conditions of supergas packaging to Ursea.
Source: Ambito
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