AT first glance it seems the Consumer Council is using a sledge-hammer to crack a nut.
It says that Hong Kong and China Gas Co might be less than a perfect vehicle for supplying gas to Hong Kong.
It says Hong Kong and China Gas is using cross-subsidisation to block competition from China Light & Power, which apparently is seeking to penetrate the water-heating market.
It also says that Hong Kong and China Gas uses little debt in financing its business operations, citing only one debenture issued in 1993. This, the council says, increases the utility's equity base and cuts returns to shareholders.
But the company was in the market only two months ago seeking $600 million through a term loan arranged by the Hong Kong branch of Fuji Bank - this was definitely not an example of equity financing, although it was the utility's first public syndication.
The council says the consumer is a captive of the gas supplier and has urged the Government to study alleged anti-competitive practices 'in light of fair competition and consumer interest'.
