MDPPACPB Regulations

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25. Prohibition of Discriminatory or Preferential Pricing 
    1.    Prohibition:  
A Licensee shall not impose discriminatory prices, terms, or conditions on 
similarly situated customers without objective cost-based or commercially 
reasonable justification. All pricing policies must be transparent, cost-reflective, 
and non-discriminatory across similarly situated customers. 
     
2.    Prohibited Practices: 
The following practices are prohibited unless objectively justified: 
 
(a) 
Charging different prices for the same product or service to 
different customers or classes of customers without cost-based or 
commercially reasonable justification; 
 
(b) 
Granting preferential rates to affiliated entities or related parties 
while imposing higher prices or more onerous terms on independent 
competitors for equivalent services or transactions; 
 
(c) 
Imposing 
hidden 
surcharges, 
non-transparent 
rebates, 
or 
unfavourable contractual terms selectively on unaffiliated parties; 
 
(d) 
Providing volume-based discounts or payment terms only to 
affiliates, even where unaffiliated customers meet the same volume or credit 
thresholds. 
(3) Permissible Pricing Differentiation 
Differentiation in pricing or commercial terms is allowed only where it is based 
on objective and verifiable factors, such as: 
 
(a) 
Volume or load profile; 
 
(b) 
Distance of transportation; 
 
(c) 
Creditworthiness and payment risk; 
 
(d) 
Contract duration; 
 
(e) 
Interruptibility of service; 
 
(f) 
Operational complexity or technical customisation requirements. 
 
(4) Related-Party Transactions 
All transactions between a licensee and its affiliates must be: 
 
(a) 
Conducted at arm’s length; 
 
(b) 
Priced no more favourably than the terms offered to unaffiliated 
competitors for equivalent services; 
 
(c) 
Fully disclosed to the Authority upon request, with supporting cost 
and pricing data. 
If an investigation reveals that related-party transactions consistently occur on 
better-than-market terms, the Authority shall presume anti-competitive price 
discrimination unless the licensee proves otherwise. 
 
(5) Monitoring and Record-Keeping 
All licensees shall: 
 
(a) 
Maintain a pricing policy manual documenting the methodology 
for setting tariffs or charges; 
 
(b) 
Record all discounts, rebates, waivers, and surcharges, including 
their beneficiaries and justification;