OfReg, the multi-sector regulator of the Cayman Islands has commenced an inquiry into a complaint of anti-competitive practices in the Liquefied Petroleum Gas (commonly known as “propane”) market.
The complaint was made against Home Gas Ltd, which is deemed to have significant market power, or a position of influence, because of the monopoly position it held for over a half a century in the propane market until the introduction of competition earlier this year.
OfReg’s broad mandate is to foster and encourage competition and innovation in the various sectors it regulates (fuels, electricity, water and ICT), which include among other things, fair and transparent prices, choice and consumer protection, and an efficient mechanism by which service providers operate sustainably.
Mr. Duke Munroe, Director of Fuels (Market) at OfReg explained the nature of the investigation. “What we are seeking to determine in this investigation is whether there is evidence that the market forces in the propane market are sustainable in the medium to long term for healthy and perpetual competition in that space. Whether we are dealing with monopolies or pure competition, we have to ensure that the welfare of customers and of the overall economy benefits”, he said.
To assist with a balanced investigation in the public’s interests, and to be in accordance with its investigation procedures, OfReg is requesting members of the public to come forward if they believe they may have been impacted in some way by the recent changes in the propane market. Persons may contact the office at [email protected] or in person at Alissta Towers, 3rd Floor, 85 North Sound Road in George Town.
The investigation is being conducted as part of OfReg’s remit under section 70 of the Utility Regulation and Competition Law (2018 Review) (“the Law”), and in keeping with its mandate under section 5(1)(d) of the Fuels Market regulation (“FMR”) Law, 2017.
The outcome of the investigation will be made public when it is completed.