Call for 'monopoly abuse' inquiry

The Malta Chamber of Small and Medium Enterprises - GRTU has asked the Office for Fair Competition to investigate Enemalta's "abuse" of its monopoly position and order it to suspend the price increases in diesel and kerosene that came into effect on Tuesday.

GRTU director general Vince Farrugia said yesterday he sent the OFC a copy of a request for corrective action sent to the Malta Resources Authority (MRA), as Malta's energy regulator, following the increase.

Both letters were sent by the GRTU on behalf of all national associations representing transporters.

The GRTU said in its letter to the MRA that if it had sanctioned the increase, this was irregular as the MRA, like the Malta Communications Authority, should by now have regulations in place that enabled interested parties to react to proposals.

It added it was inconceivable that Enemalta, having a monopoly in energy supplies, continued to increase tariffs and prices without informing the public of an application for such an increase and without the authorisation, after due public notification and assessment, by the MRA as the national energy regulatory authority.

The GRTU said its complaint referred to the method adopted by Enemalta to increase the prices of energy products.

"GRTU is gravely concerned that rather than the import price parities, Enemalta appears to use some other pricing method which is to the disadvantage of consumers and users.

"As SME representatives we have a right for transparency of the price setting mechanism in force by Enemalta Corporation.

"We also have a right to seek the protection of the MRA against unilateral impositions of prices by the energy monopolist."

The GRTU asked the MRA to investigate the whole price setting mechanism and order Enemalta to withdraw the 8m diesel price increase and the 1c4 kerosene increase imposed on November 1. The chamber asked the MRA for "an urgent meeting" to present the transporters and small businesses's position on the issue.