China opens antitrust probe into gas suppliers as shortage drives up prices amid cold snap
Seventeen companies have come under investigation since December 20
China’s top energy price regulator has launched antitrust investigations on 17 firms including a unit of the nation’s largest natural gas supplier, and slapped fines on at least four gas and heat suppliers for flouting price rules amid winter shortages.
The move highlights Beijing’s reluctance to let market forces determine demand and supply of energy products at times of surging prices and shortages despite having partially liberalised energy prices.
Natural gas is a key winter commodity in a country which has a track record of putting social stability ahead of progress of energy pricing reform.
“Chinese government [officials] usually have their reading of the market, in case [it leads] to a tariff cut they will actively promote it ... in case of a hike they might hesitate,” said Dennis Ip, head of Hong Kong and China utilities equities research at Daiwa Capital Markets.
The 17 firms, which include the Daqing branch of PetroChina – the nation’s largest natural gas producer, importer and pipeline operator – have been probed for suspected anti-monopoly behaviour, the National Development and Reform Commission said in a statement on Tuesday.
This was aimed at maintaining “orderly competition in the natural gas market and protecting consumers’ legal rights”, it said, adding the probe began on December 20.