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GAIL in trouble-II: The truth will be out soon
Jan 04:
GAIL uses its monopoly powers to exploit its customers.
8The source of this power emanates from the fact that it is both a monopoly pipeline owner as well as a marketer of gas.
8The allegations, however, have never been entirely proved but a comprehensive investigation by the Competition Commission will soon nail the truth once and for all.
8GAIL's claim has always been that back to back obligations force an onward imposition of Take or Pay (ToP) conditionalities on customers and its conduct has never been one where it abuses its monopoly supplier status.
The Commission is now going to dig up all the relevant information needed to either prove or disprove GAIL's claim, by looking into:
8The different sources of gas procurement by GAIL and the nature of arrangements with each supplier including price and ToP liability under each such arrangement
8Whether the gas supplied to the customers is supplied from a commingled stream, in which case, what is the basis for price determination/ revision from time to time
8Whether ToP liabilities are always imposed on GAIL by its upstream suppliers which are then passed on to customers
8Whether GAIL suffers losses, as it claims it does, on account of non off-take or under-drawl of gas by its contracted customers
8What were the total ToP liabilities levied by the GAIL on all its customers located across India in recent years
8Whether GAIL has indeed adopted any discriminatory practice in the imposition of ToP liability across its customer base
8Whether GAIL imposed full ToP liability only in cases where the concerned buyer contested the legality of the ToP claim or resorted to litigation or arbitration proceedings
8Details of policy, if any, of GAIL regarding the imposition of different liability upon different classes of customers.
Click on Reports for more
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8The source of this power emanates from the fact that it is both a monopoly pipeline owner as well as a marketer of gas.
8The allegations, however, have never been entirely proved but a comprehensive investigation by the Competition Commission will soon nail the truth once and for all.
8GAIL's claim has always been that back to back obligations force an onward imposition of Take or Pay (ToP) conditionalities on customers and its conduct has never been one where it abuses its monopoly supplier status.
The Commission is now going to dig up all the relevant information needed to either prove or disprove GAIL's claim, by looking into:
8The different sources of gas procurement by GAIL and the nature of arrangements with each supplier including price and ToP liability under each such arrangement
8Whether the gas supplied to the customers is supplied from a commingled stream, in which case, what is the basis for price determination/ revision from time to time
8Whether ToP liabilities are always imposed on GAIL by its upstream suppliers which are then passed on to customers
8Whether GAIL suffers losses, as it claims it does, on account of non off-take or under-drawl of gas by its contracted customers
8What were the total ToP liabilities levied by the GAIL on all its customers located across India in recent years
8Whether GAIL has indeed adopted any discriminatory practice in the imposition of ToP liability across its customer base
8Whether GAIL imposed full ToP liability only in cases where the concerned buyer contested the legality of the ToP claim or resorted to litigation or arbitration proceedings
8Details of policy, if any, of GAIL regarding the imposition of different liability upon different classes of customers.
Click on Reports for more
