Sasol Gas (Proprietary) v Limited Competition Commission of South Africa and Others (OTH110Sep22; IR095AUG22) [2023] ZACT 65 (12 May 2023)

Sasol Gas (Proprietary) v Limited Competition Commission of South Africa and Others (OTH110Sep22; IR095AUG22) [2023] ZACT 65 (12 May 2023)

The Tribunal found that both NERSA and the Competition Commission have concurrent jurisdiction over gas pricing matters. The Competition Act empowers the Commission to investigate excessive pricing, even where NERSA has set a maximum price. The evidence showed that the international benchmarking methodology used by...

Source-derived case information.

Citation
[2023] ZACT 65
Parties
Applicant: Industrial Gas Users Association of Southern Africa; Respondent: Sasol Gas (Proprietary) Limited; Respondent: National Energy Regulator of South Africa; Respondent: Competition Commission of South Africa; Respondent: Egoli Gas (Proprietary) Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Case Number
IR095AUG22; OTH110SEP22
Procedural Posture
Urgent Application / Interim Relief and Jurisdictional Challenge
Outcome
IGUA-SA's application for interim relief is granted in part; Sasol Gas is interdicted from increasing gas prices above R68.39/GJ unless two months' written notice is given. Sasol Gas's application to suspend the Summons is dismissed.
Judges
M Mazwai, G Budlender SC, A Roskam
Legal Topics
Excessive Pricing, Concurrent Jurisdiction, Interim Interdict, Gas Regulation, Prima Facie Right, Balance of Convenience
Competition Law Commercial and Corporate Excessive Pricing Concurrent Jurisdiction Interim Interdict Gas Regulation Prima Facie Right Balance of Convenience

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Parties

Industrial Gas Users Association of Southern Africa

Applicant

Sasol Gas (Proprietary) Limited

Respondent

National Energy Regulator of South Africa

Respondent

Competition Commission of South Africa

Respondent

Egoli Gas (Proprietary) Limited

Respondent

Procedural Posture

Urgent Application / Interim Relief and Jurisdictional Challenge

  1. 1 Whether Sasol Gas may increase gas prices above R68.39/GJ pending the Competition Commission's investigation into excessive pricing.
  2. 2 Whether the Competition Commission has concurrent jurisdiction with NERSA to investigate excessive pricing in the gas sector.
  3. 3 Whether the Summons issued by the Competition Commission to Sasol Gas should be suspended or stayed.

Ratio Decidendi

The Tribunal found that both NERSA and the Competition Commission have concurrent jurisdiction over gas pricing matters. The Competition Act empowers the Commission to investigate excessive pricing, even where NERSA has set a maximum price. The evidence showed that the international benchmarking methodology used by NERSA produced a price (R273.43/GJ) that was not appropriate for South African consumers, and both NERSA and Sasol Gas acknowledged this. IGUA-SA established a prima facie right not to be subjected to excessive pricing and a well-grounded apprehension of serious or irreparable harm if prices were increased above R68.39/GJ. The balance of convenience favored granting interim...

Court Disposition

IGUA-SA's application for interim relief is granted in part; Sasol Gas is interdicted from increasing gas prices above R68.39/GJ unless two months' written notice is given. Sasol Gas's application to suspend the Summons is dismissed.

Orders

  • Pending the conclusion by the Competition Commission of its investigation into the alleged prohibited practice of charging an excessive price to the detriment of consumers or customers, Sasol Gas is interdicted and restrained from increasing the gas price to a price above R68.39/GJ, unless it has first given the...
  • This interdict will endure to the earlier of the dates referred to in section 49C(4) of the Competition Act.