Market Chatter: Chongqing Gas Group Gets 8-Million-Yuan Find for Billing Issues

A Chongqing regulator fined state-backed utility Chongqing Gas Group 8.1 million yuan for failing to address persistent billing irregularities, YiCai Global reported Monday.

These irregularities include "chaotic" meter reading cycles, unauthorized and incorrect readings, and insufficient reading staff, according to the report.

Chongqing Gas said it will expedite rectification efforts, protect customer rights and hold responsible parties accountable, YiCai Global wrote.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Chongqing Gas Group issued a public apology and pledged sweeping reforms after a government investigation uncovered issues with its gas billing practices.

The company said it accepted the findings of the Chongqing Municipal Market Supervision Administration and will implement immediate corrective measures, including optimizing meter-reading processes, enhancing service teams, and accelerating smart technology upgrades to improve billing precision, according to a Sunday filing with the Shanghai bourse.

Also, the natural gas distributor said it will adopt grid-based services to strengthen customer communication and ensure accountability.

Shares of the Chongqing Gas Group closed 1% lower Monday.

Chongqing Gas Group said it is set to repurchase and cancel 10,300,240 restricted shares, reducing its total share capital to 1.56 billion yuan from 1.57 billion yuan.

The gas company is notifying creditors, who have between 30 and 45 days to request debt repayment or guarantees if needed, according to a Wednesday filing with the Shenzhen bourse.

Chongqing Gas Group shares were down less than 1% in recent trade.

Chongqing Gas Group said it is set to repurchase and cancel 10,300,240 restricted shares, reducing its total share capital to 1.56 billion yuan from 1.57 billion yuan.

The gas company is notifying creditors, who have between 30 and 45 days to request debt repayment or guarantees if needed, according to a Wednesday filing with the Shenzhen bourse.

Chongqing Gas Group shares were down less than 1% in recent trade.