Government defends gas division liberalisation move
The government yesterday underscored the importance of liberalising the gas-bottling market.
Reacting to comments by the Labour Party on the issue, the government said it believes in an open market, whereby the price is regulated through competition.
Gasco's taking over of Enemalta's gas division will not hinder other interested parties from entering the market, the government said. One must not forget that a regulator will be appointed in order to ensure companies do not operate to the detriment of the consumer, it said. The MLP is arguing that the privatisation of Enemalta's gas division ignored the needs of the consumer.
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john fenech
Sep 12th 2008, 17:00
So far the only importance was to keep Malta’s commitment to the EU. When Malta entered the European Union (EU) the country agreed on the liberalization of the petroleum market. Specifically the country agreed to liberalize importation, stocking and wholesale of petroleum. So LPG liberalization was a forgone conclusion.
As regard the benefits to the consumer one expects a safer storage environment, gas bottling to EU specifications, a guaranteed supply of LPG and the price will remain the same. The latter depends on the agreement between the government and Gasco.
Since Gasco will be in a dominant position it is up to the government to attract other investors to create a competitive market, but this will be easier said than done!
L Galea
Sep 12th 2008, 10:39
This only means higher prices topped up by the EU taxes on energy products to be paid by the consumers in the name of free market competition.