GRTU seeks close scrutiny of any fuel price hikes

The Malta Chamber of Small and Medium Enterprise - GRTU has called for the intervention of the Malta Resources Authority and the Office for Fair Competition in the fuel price issue.

The GRTU urged them to follow acceptable procedures in assessing claims for the increase of charges made by Enemalta Corporation so as to protect the interests of the consumers and all stakeholders.

In a letter to MRA chairman Joseph N. Tabone and to Marcel Pizzuto, OFC director general, the GRTU said it was retaining the right to complain to the European Commission should it feel that EU regulations and norms on competition and regulation of monopolies were not fully adhered to in Malta.

The GRTU letter came in the light of references to the soaring price of oil and its effect on economies worldwide, and a warning by the Prime Minister that electricity prices needed to be revised.

In its letter, the GRTU said the price of fuel products sold by the monopolistic energy supplier Enemalta had gone up on a regular basis notwithstanding the high impact of these increases on enterprises, particularly those in services with a high operational ratio of fuel costs.

The GRTU asked the MRA to inform it about what procedures and regulations were being used by the authority, as the energy regulator, to ensure that the impact on enterprises and consumers was taken seriously into consideration prior to the approval of increases.

It also asked the regulator to inform it whether the MRA was satisfied that EU regulations and procedures were being respected to the full.

"We are interested to know also whether Enemalta is being subjected by the OFC to the monopolies regime of assessments prior to the approval of price increases," the GRTU said. It added that the MRA was expected to perform its role according to EU directives and norms governing the regulation of energy suppliers.

On the other hand, the OFC was expected to ensure that the monopolistic supplier was basing its claims for increased charges on a rigid assessment of Enemalta's costings systems and purchasing procedures and that the claims for increases reflected pricing and costings in a competitive environment.

The GRTU said the procedures should include the public notification of claims by the supplier and the presentation of arguments supporting these claims and costings for review by the regulator.

Procedures should also provide for enough time for the hearing of objections and presentation of counter arguments by all stakeholders.

The GRTU said prices should be based on transparency, consistency and objectivity.