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Law 142 of 1994, Articles 73 and 74, the functions assigned to the CREG. Among other functions, they are those of established formulas for fixing tariffs for electric utilities and fuel gas, either natural gas or liquefied petroleum gas, LPG, or gas cylinders: LPG is a mixture of gases liquefied natural gas present in or dissolved in oil, consisting mainly of propane and butanes. Is gaseous mixture under conditions of pressure and temperature; but hence its name easily liquefies, by cooling or compression and is usually sold in cylinders.
In the specific case of LPG, CREG Resolution 180 of 2009 establishes the rate formula to be applied by companies providing service in order to determine the price of the service. In essence, the goal of tariff formulas is to add costs to be incurred by the service provider to serve their end users. And, therefore, the final price you are charged the user can increase or decrease depending on the variation presented by the various cost components included in the rate formula.
The tariff formula defined in the resolution in question and that applies to public service GLP house is:
Cu = G + T + D + Cd
Cu = Unit cost of service delivery (pesos per kilogram - $ / kg.), For end users. When the service is provided in cylinders, this unit cost is multiplied by the number of kilograms of gas containing the different denominations of such cylinders. For example, to determine the final price of the cylinder 40 pounds, Cu is multiplied by its equivalent in kilograms, ie 18 kilograms (cylinder weight is subtracted).
This value can vary monthly Cu vary according to the G, T, D and Cd of the formula components.
G = Purchase cost of LPG is estimated at $ / kg. The gas may have different prices according to the source thereof, whether of domestic production or import. Domestic production sources are generally refineries as those located in the cities of Cartagena and Barrancabermeja; but it is also obtained from treatment of natural gas and Casanare Tauramena-field Cusiana production. If the dealer buys the product from different sources, the cost is determined as the weighted average price of all purchases.
To determine the remuneration of the companies that supply LPG distributors CREG considered the dominant position of ECOPETROL (99% of supply) and determined the need to subject the system of freedom that remuneration I regulated under Article 88 of the Law 142 of 1994. for this purpose, by Resolution CREG 088 of 2007 adopted the tariff formulas based on which ECOPETROL can determine the maximum price that can be charged to dealers who buy LPG.
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