A gas company must, therefore, exercise care to avoid harm to others and is liable for its Negligence that results in injury to others by reason of the escape or explosion of gas. Gas has a highly dangerous and volatile character and tends to escape. InjuriesĪ gas company is under the obligation to exercise ordinary care in the construction of its works and the conduct of its business in order to protect life and property. There are also statutory penalties in some states for such wrongful refusal.
#Franchise pertamina spbu install
Some statutes require that gas companies install a meter on the premises, in order to register the consumption of gas by each customer and where a customer tampers with the meter and uses a significant amount of unmetered gas, the company can discontinue service and refuse to restore it until the customer pays the amount due for the unmetered gas taken.Ī gas company that wrongfully refuses to supply a customer with gas is liable for damages. A gas company may not require the owner or occupant of a building to pay over-due and unpaid bills by a former owner or occupant before it continues service to the building. If there is a genuine controversy about the amount owed, a company is not permitted to discontinue service. A municipality or corporation supplying gas may make reasonable rules and regulations to secure the payment of bills, such as eliminating service to the consumer. A court may, in certain instances, enjoin the discontinuance of service for a reasonable period-to circumvent undue hardship and inconvenience to the residents of the area.Ī gas company has the duty to serve all those who are within the franchise area who desire service and subscribe to the reasonable rules that it may set forth. Once the franchise of a company has expired, it may withdraw the service. Upon obtaining a franchise to supply gas to a particular geographic area, a gas company is bound to fulfill its obligation it cannot withdraw its service from an area merely because it is dissatisfied with the rates permitted there. The jurisdiction of the commission ordinarily includes the power to establish rates and to set forth rules and regulations affecting the service, operation, management, and conduct of the business. In a number of states, gas companies are subject to a public service commission or other such agency. A state may regulate gas companies for the protection of the public and may delegate its regulatory powers to municipal corporations in which gas companies operate. The manufacture of distribution of gas for light, fuel, or power is a business of a public character, and, therefore, a gas company is ordinarily considered to be a public or quasi-public corporation or a business affected with a public interest. The charter of a gas company is a franchise granted by the state.
In the event that a city assumes the performance of such function, it is acting merely as a business corporation. SupplyĪ Municipal Corporation does not have the duty to supply gas to its population. Various legal issues arise concerning the use and distribution of gas.