The Competition Appeal Court (CAC) currently rejects Sasol’s attempt to challenge the Competition Commission’s probe into the alleged overpricing of natural piped gas. This refusal by the CAC opens the door for the commission to take legal action against Sasol Gas by referring the case to the Competition Tribunal.

In a statement released on March 6, the commission emphasises its authority to investigate and prosecute claims of excessive pricing in the natural piped gas industry, as mandated by the Competition Act. The commission also mentions its intention to obtain relevant costing data from Sasol Gas, forming the foundation for its pricing of natural piped gas.

The case against Sasol Gas originated from three complaints filed with the commission in early 2022 by gas traders Egoli Gas and Spring Lights Gas, along with the Industrial Gas Users Association of South Africa (IGUA-SA). Allegations included excessive pricing of natural piped gas, a violation of the Competition Act.

The commission issued a summons to Sasol Gas on August 12, 2022, seeking necessary information for the investigation. Despite Sasol Gas refusing to respond and seeking relief from the tribunal, the interdict against the summons was dismissed on May 12, 2023.

Subsequently, Sasol Gas sought interdictory relief from the CAC, which was granted on June 12, 2023, pending the review application. However, this review application has now been dismissed by the CAC.

Sasol Gas’ application aimed to invalidate and deem unlawful the commission’s decisions to investigate and issue the summons. The company argued that the National Energy Regulator of South Africa (Nersa) held exclusive jurisdiction over Sasol Gas’ conduct, including determining the maximum gas price under the Gas Act. Sasol Gas contended that competition authorities lacked the authority to probe whether it engaged in excessive pricing.

The commission asserted its statutory power to investigate complaints and issue summons, maintaining that it has concurrent jurisdiction with Nersa over Sasol Gas’ conduct. The CAC decision confirms this concurrent jurisdiction, with Nersa determining the maximum gas price under the Gas Act, and the commission investigating allegations of excessive pricing under the Competition Act.

Sasol acknowledged the CAC ruling and stated that it is reviewing the judgment to determine the appropriate next steps in the matter.