Framework of IBR

Incentive-Based Regulation (IBR) for gas facilities is a framework or mechanism established to regulate the piped gas supply industry effectively while promoting efficiency, cost management, and service quality. Gas facility tariff is set with built-in incentives to improve efficiency without sacrificing quality of service of utilities. 

It is applied to licensed gas facility operators, including Transportation Licensees, Distribution Licensees, and Regasification Licensees. IBR allows a structured, transparent, and informed way of tariff setting, taking into requirement for capital expenditure (CAPEX) and operational expenditure (OPEX) by the licensees. 

IBR mechanism ensures that the licensees can continuously enhance their efficiencies and increase transparency in providing gas supply to Users in full compliance with the projected expenditures. In addition, the Energy Commission continues to audit and review past performances as well as accommodate new requests from the licensees.