The gas review

The Monopolies and Mergers Commission (MMC) report on the supply of gas through pipes to persons other than tariff customers was published in October 1988. The Gas Act 1986 defined a tariff customer as one taking less than 25,000 therms of gas per annum. Such customers could only be supplied by ''public gas suppliers'' who had to meet rigorous conditions. British Gas plc (BG) is the only public gas supplier and therefore has a monopoly in this sector. Customers taking more than 25,000 therms per annum (thpa) are subject to individual contracts and are able to obtain gas from other sources. At the time of the MMC reference, there were no other players in this market. The MMC concluded that the BG monopoly of supply and certain practices of BG operated against the public interest and made recommendations which were designed, inter alia, to facilitate new entry into the market and to encourage competition in the supply of gas. (author)