Liquigas asks court to stop competitor storing its cylinders
Liquigas has filed an application in court for the issuing of a warrant to stop Easygas from collecting LPG cylinders belonging to Liquigas.
“In a competitive market, the practice of collecting and storing containers of one’s competitor is certainly not acceptable. Furthermore, the practice of cylinder exchange is totally prohibited in European countries, where legislation imposes precise obligations for removing cylinders from the market," Liquigas said.
In the privatisation exercise, Liquigas inherited all Enemalta Corporation’s yellow and brown cylinders under the terms of an agreement signed on 28 November 2008. Subsequently, Liquigas started an extensive retesting process of the LPG cylinders, and in the process started changing their colour from yellow and brown to Liquigas green. Since 2009, Liquigas also purchased new green cylinders and these were put on the market.
Amid the controversy which developed as Liquigas started demanding receipts from consumers who wished to return its cylinders, Maltagas started to take the Liquigas cylinders itself when consumers wished to make the switch to its product.
Liquigas stated that Easygas’s withholding of Liquigas’s cylinders was manifestly illegal and abusive because it constituted a violation of Liquigas’s proprietory rights, both material and intellectual.
"It is obvious that a company operating in the LPG sector should have total control over its cylinders even for reasons of safety relating to the cylinders in which it sells its LPG," Liquigas said.
"In this case, Liquigas is being prejudiced also because part of its stock of cylinders is being withheld at Easygas, causing Liquigas stock of cylinders to shrink."
Mr Justice Caruana Demajo assigned the hearing for February 9.
The application was signed by Dr Richard Camilleri, Dr Stephen Muscat and P.L. Christina Fiorini Lowell.
34 Comments
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gcForte
Jan 23rd 2011, 09:40
@ Stephen Koludrovic & Ramon. Casha.......I can understand very well your arguments, because I was a gas distributor for ten years myself, and both of you are right. But the most important thing you should do, when receiving the cylinder, is to check the seal( although today it is stupid seal, and something should be done ). If you want to show the distributor that you mean business,check the weight of the cylinder ( by using the bathroom scale) just for once in his presence. As far as I know, tourists will not pay directly for the gas.The landlord will take care of that. When coming to fill one empty cylinder from a full one, in my experience, it is impossible, with the clip on regulators.With the old ones( the one using the spanner ) yes, it can be done. What can happen( very rare ) is that somebody for some reason gives to the distributor a half full cylinder, and he abuse and sell it for a full one, to somebody that is not going to lift it.,like an old lady. That is why I said that you have to show,that you know how to protect your pocket.
J. De Bono
Jan 22nd 2011, 23:27
Looks very much like Liguigas are trying to maintain the monopoly on this market by unfairly asking for its cylinders back, should they wish these cylinders back they should refund Easygas the asking price, as this would otherwise be unfair on a new competitor trying to establish itself in this monopolized market, I personally will be switching over the easygas simply out of respect for a company trying to provide the people with a service, people need gas regardless who supplies it , why should one have to wait for only one competitors deliveries or pay out more in deposits to obtain tanks from another supplier. This is very dirty business from Liguigas and will not work in their favor in the long run.
Peter Korsten
Jan 22nd 2011, 19:37
So, let's see... either we let Liquigas rip us off for €40 (we have two cylinders, one in use and one spare), or we keep those cylinders. Maybe we buy Easygas, maybe we won't. I really don't care. I remember being unable to cook for over a week because they ordered the wrong kind of cylinder, or something of the sort. So far I've not been particularly impressed by their performance, and their latest antics do little to remedy that. Perhaps I'll turn the cylinders into some modern artwork, and then they can sue me for €10.
Sylvana Zarb Darmanin
Jan 22nd 2011, 16:41
"causing Liquigas stock of cylinders to shrink". Well, Liquigas, try ordering new stock of cylinders at a ridiculous price of Euro 5!! Sirs, we are not beggars to accept your offer!
Paul Barrett
Jan 22nd 2011, 16:21
Maths is not my best subject but if buy a gas cylinder pre 1995 with a deposit at Lm 5.00 (which is somewhere around Euro 11.65) then with interest, purchasing power etc., the equivalent amount now (and market price set by Liquigas) is around Euro 25.
For Liquigas to offer less than current market price, even if you can produce a receipt for Lm 5.00 (or less) as a return for all the money they have had to play with over the years is nothing less than extortion.
As someone mentioned earlier - much like returning a glass pop bottle, you could return it to any shop and get your refund and you certainly did not have to buy the same brand of pop if you wanted a replacement drink.
Joseph calleja
Jan 22nd 2011, 15:20
Another perfect solution. Why doesn't Liquigas pay Easygas the same money that Liquigas wanted the consumer to pay for returning their empty tanks without a receipt? Fair enough? Honestly the only people profiting from this deal is the Lawyers. That is why MONOPOLIES in Malta have to stop. I think all Gas tanks should be one colour or at least interchangeable. Stop putting the consumer in the middle of your squabbles and let's get on with the show.
Paul Fenech
Jan 22nd 2011, 15:11
Liquigas, when I paid €25 for the cylinder that cylinder became mine. It was only exchanged because it is easier to change it for a filled one when it is empty with an equivalent cylinder. I am not going to give it back to you for your measly €5 even if I leave it to rust away or cut it in two to make 2 BBQs to use in my field. How can you know and prove that I have one of your cylinders if I never signed that I have received it liquigas? I WAS NOT GIVEN A RECEIPT. GET LOST LIQUIGAS.
E. Azzopardi
Jan 22nd 2011, 15:06
They still do not want to give in an inch, that is, find a solution for the consumers. Are they afraid of the competition? Is that how "competition" works in Malta? Can some champion of consumer rights wake up and tell them what they should do?
D.Cilia
Jan 22nd 2011, 13:40
I think that this summer everyone is gonna own 1 or 2 or even 3 yellow bbq sets :)
Joseph Galea
Jan 22nd 2011, 13:18
According to the 2005 Malta census,there is a total of 119,479 private households.If you multiply by 2, you will have 238,958 liquigas cylinders in circulation.By this simple calculation if customers will keep hold to these cylinders(they will only cost you 10euro (Lm4.29) for both) ,liquigas will soon start to run out of stock and will offer 25euro for each cylinder returned, receipt or not. And if you want to wait ,you might get 30euro for each cylinder in 2 years time.
gcForte
Jan 22nd 2011, 14:41
A very good observation, and calculation.........which I agree.
N Xuereb
Jan 22nd 2011, 12:45
Liquigas is wrong in my opinion. I have 8 of their cylinders and would gladly leave them to rot than give them back for 5 euros (most of them where purchased for over 25 euros without being given a reciept) The other option would be exchanging them with Easygas, which is easier and cheaper. Keppign them myself or given them to Easygas, Liquigas will still not get them back, so if you want them, dear Liquigas, pay their current price.
A.Mifsud
Jan 22nd 2011, 12:08
Liquigas' stock of empty cylinders would shrink anyway if customers decide to purchase easygas bottled gas instead whilst keeping Liquigas empty tanks in store. Since the customers cannot produce the old receipts they'd rather keep the empty tanks than allow this greedy supplier (liquigas) to defy the laws of fair competition.
Just the same it cannot force Easygas to stop it from exchanging Liquigas for it's own! Give it up liquigas you've got everything to loose!
Joseph Vassallo
Jan 22nd 2011, 11:11
Another ploy by Liquigas to frustrate its erstwhile customers by attempting to keep them locked into its grid.
Its directors need to accept that monopolies are not compatible with the free-market system now patronised throughout Europe.
I'm glad I don't use gas any more.
charles philip zammit
Jan 22nd 2011, 11:01
liquigas from whom i did not buy or paid any deposit just couldnt order me what to do with the gas cylinders that are in my possession. they may have settled for enemalta's gas division takeover but then thats between enemalta and liquigas they should have given another receipt in the name of liquigas for any payments whe had made to enemalta vis a vis cylinders deposits. could anybody enlighten us to the sum liquigas has paid to enemalta against the cylinders deposits accounts. they we would be in the know if what leguigas are stating is true or not. if they morally and legally own the cylinders we have paid a deposit for to another entity or not. this is not just a case between liquigas and the other player...all the maltese people are also involved. alas we dont have the means and the money to field a team of legal experts to raise the banner for us.
Joseph Borg
Jan 22nd 2011, 10:52
If Liquigas were professional enough, they would have fought to have their own distributors!!!!
How can an independent distributor keep running around between competitors to return empty tanks? IGNORANCE!!!!
Ramon Casha
Jan 22nd 2011, 10:34
"In a competitive market, the practice of collecting and storing containers of one’s competitor is certainly not acceptable"
In a competitive market, trying to prevent third-party distributors from carrying your competitor's products is certainly not acceptable, and neither is refusing to pay a customer's deposit upon return of a loaned product.
Rmangion
Jan 22nd 2011, 10:21
It is a cut throat jungle out there after all
GO Vs Melita
Liquigas Vs Easygas
imagine another gozo ferry provider, wowow that would be interesting hehehe
L Cardona
Jan 22nd 2011, 11:48
Go was ordered to let it's infrastructure to be used by its competitor Melita.
Stephen Koludrovic
Jan 22nd 2011, 10:01
There is a rumour doing the rounds that maybe Liquigas cylinders might not be as full as the Easygas ones.
My question would be, is there any independent authority checking the weight of the gas to ensure that we, the consumers are getting the exact amount that we are paying for?
gcForte
Jan 22nd 2011, 13:56
First of all, if I am not mistaken, cylinders are filled equal automatically, there will be checks for leakages, by employers, but sometimes, a cylinder or two escape the check. So, the best thing you do is, invest in a good normal bathroom scale, and when the deliveryman comes, check it yourself on the scale.
Stephen Koludrovic
Jan 22nd 2011, 15:48
Yeah sure, I'll just take the scales to the truck and measure it over there. Ha. Ha.
So I'll go 1 full cylinder - 1 empty cylinder should give the correct amount of gas, right?
Ramon Casha
Jan 22nd 2011, 17:47
@gcForte: I know for a fact that, at least until very recently, gas cylinders delivered to areas with a large population of tourists or summer residences were either only partly filled, or someone is making money by "sharing" the gas from each new cylinder with a returned empty one, and selling them as full.
joanna farrugia
Jan 22nd 2011, 10:01
@ g forte what easygas are doing is very good indeed i tell you why. so liquigas said recently that if you provide the receipt of the cylinder you are intitled for 25eu right? so when i done this the gas disturbour told me you only paid Lm5 for it so i am going to give you 15eu.liquigas must stop all this because suppose we have free market in malta and my only question is when easygas are going to start door to door service?who is robbing who g forte?
C Falzon
Jan 22nd 2011, 09:54
"It is obvious that a company operating in the LPG sector should have total control over its cylinders even for reasons of safety relating to the cylinders in which it sells its LPG,"
This doesn't make sense. What difference is there between a Liquigas cylinder being stored at an Easygas warehouse and being stored unused at a consumers house?
If Liquigas does not give refund the deposit the cylinder will lie unused for years, possibly forever, to deteriorate at the customer's house anyway. If anything the ones collected by Easygas will probably be better taken care of and will also be easier for Liquigas to collect if they ever decide to do so, obviously after refunding the deposit or exchanging with Easygas cylinders.
The only real reason for there protests is clearly just to place an obstacle for Easygas to make it more difficult for them to enter the market.
Chris Mifsud
Jan 22nd 2011, 09:53
My god! Who cares??? As long as gas cylinders are supplied i don't think anybody cares who supplies them.
Id just buy from the closest and most convenient place at the time most convenient to me as possible.
Charles Micallef
Jan 22nd 2011, 09:01
Silly little boys bickering while the
long suffering consumer listens in
disbelieve in this Divina Commedia!
gcForte
Jan 22nd 2011, 09:00
I think that Easygas are storing the Liquigas cylinders to make a small profit when Easygas decides to accept to give 25 euros back for every cylinder. Clever eh. (:
J Fenech
Jan 22nd 2011, 10:22
I think the only reason why easygas are "storing" liquigas cylinders is becuase liquigas want to rip us of by only giving us € 5 becuase we don't have non existant deposit receipts.
I am prety sure they would give the cylinders back to liquigas if liquigas payback the €25 deposit they are currently charging.
A. Mifsud
Jan 22nd 2011, 12:16
I don't think easygas stands to profit from such move. When a customer returns an empty liquigas tank they're giving a new one back anyway. No?
So at the end they're not gaining any benefit.
gcForte
Jan 22nd 2011, 12:28
@ J Fenech & joanna farrugia..........Yes I believe it is a rip off, coming from the side of Liquigas. I came to this conclusion because,if the customer lost or threw it in the dustbin, because A. if you keep all the receipts that we will have through our lives, we will have no place to live in our houses, because the receipts will take over. B. Who can imagine that today`s government was going to get rid of all the fat cows that the governments of 20-30 years ago had created . The point that I wish to enforce is, IF THE CUSTOMER LOST / THREW AWAY the receipt, the Liquigas should have inherited the original or the copy of all those who put the deposit on the cylinder. If they LOST / THREW AWAY the receipts, they are guilty as much as the customer. I have always been thought that THE CUSTOMER IS ALWAYS RIGHT.
d.willow
Jan 22nd 2011, 08:31
I wonder how long Liquigas are going to stretch this out - if they get away with this then I for one will not return MY cylinders and as such will still be out of circulation. It will rot and rust like many thousands of others. I will then pay another set of depositis to easy gas but I will demand priced and dated reciepts and take their supply for the future. is this concept not easy for Liquigas to understand?
So not only do Liquigas expect to rob their customers of the actual deposits paid as a direct of their own actions but they then sell their cylinders approximately 3% light of gas. The sooner energy suppliers are solely government owned as non profit making entities the better.
simon cutajar
Jan 22nd 2011, 08:23
When I go to the supermarket they eccept coca cola , pepsi , delicata and marsovin empty bottles and I will have refund for the amount of bottles I give , so this is not a big deal case , both of them have to accept every cylinders .
Liquidgas should eccept the case that there monopoly in gas distribution is at the end and they should stop barking !
Paul Barrett
Jan 22nd 2011, 08:00
This is easy. All Liquigas has to do is buy its cylinders back from Easygas at the market price it is charging for them - i.e., Euro 25. (Remember, Liquigas set the market price on empty cylinders). Liquigas can of course demand a receipt for reclaiming their empty cylinders from Easygas - if they insist and persevere in getting one.