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The Competition Appeal Court's (CAC's) decision to dismiss chemicals and energy company Sasol's application to review the Competition Commission’s investigation into alleged excessive pricing of natural piped gas paves the way for the commission to refer a case against Sasol Gas to the Competition Tribunal for prosecution.
"The CAC decision re-emphasises the commission’s mandate to investigate and prosecute excessive pricing complaints in the natural piped gas industry in terms of the Competition Act.
"The commission will also be able to obtain the relevant costing data from Sasol Gas that forms the basis of its pricing for natural piped gas," the commission said in a March 6 statement.
Three complaints against Sasol Gas were lodged with the commission in early 2022 by gas traders Egoli Gas and Spring Lights Gas, and industry organisation the Industrial Gas Users Association of South Africa (IGUA-SA).
The complainants alleged, among others, that Sasol Gas engaged in excessive pricing of natural piped gas in contravention of the Competition Act.
The commission issued Sasol Gas with a summons on August 12, 2022, requesting relevant information to assist with its investigation into the alleged conduct.
However, Sasol Gas refused to respond to the summons and requested interdictory relief from the tribunal. The Tribunal, however, dismissed the interdict against the summons on May 12, 2023.
Sasol Gas then approached the CAC seeking the same interdictory relief. On June 12, 2023, the CAC granted Sasol Gas interdictory relief against the commission’s summons, pending the review application, which has now been dismissed by the CAC.
Sasol Gas’ review application to the CAC sought to declare the commission’s decisions to investigate and issue the summons invalid and unlawful, and to review and set aside those decisions.
Sasol Gas contended that the National Energy Regulator of South Africa (Nersa) had the sole jurisdiction to deal with Sasol Gas’ conduct, including the jurisdiction to determine the maximum price of gas under the Gas Act, and that competition authorities did not have the power to investigate or determine whether Sasol Gas had engaged in excessive pricing.
The commission contended that it had the statutory power to investigate complaints it received and to issue summons as part of its investigations.
"The CAC decision confirmed that the commission, and by extension competition authorities, has concurrent jurisdiction with Nersa over Sasol Gas’ conduct.
"Nersa may determine the maximum price of gas under the Gas Act, and the commission may investigate alleged excessive pricing under the Competition Act," the commission noted.
Sasol said it had noted the CAC ruling and that it was studying the judgment to decide on the most appropriate next steps in the matter.