In July 1995, the Consumer Council of Hong Kong published a report on the gas industry in Hong Kong, The Report attacked the non-interventionist and safety policies of the government as having helped the town gas monopolist to earn excessive profits, to the detriment of its customers, The Report proposed a restructuring of the gas industry, with an aim of introducing competition into the industry, This paper discusses the structure and performance of the energy industry in Hong Kong, outlining the major proposals of the Consumer Council and its methodology pitfalls. Based on the experiences of industry restructuring in the USA and UK, the author provides an alternative approach to restructuring the gas industry in Hong Kong.