The competition watchdog has annulled an agreement gas distributors had signed with the Enemalta Gas Division back in 1992, opening the door to the liberalisation of the gas delivery system.
The decision will now be studied by the Competition Appeals Tribunal.
Sources said the decision would effectively mean that the 30 gas distributors would now face competition from anyone who decided to buy gas from any of the two suppliers and distribute cylinders door to door.
Vince Farrugia, director general of the Chamber for Small and Medium Enterprises (GRTU), which represents gas distributors, said it was “not acceptable” that an authority simply erased a 20-year agreement “at the stroke of a pen”.
He said the GRTU was studying the implications of the decision and whether it could appeal it in any way.
According to Mr Farrugia, the decision meant that if the GRTU ordered industrial action, it would be fined the equivalent of 10 per cent of its assets.
If the distributors took action without the approval of the GRTU, they would be fined 10 per cent of their turnover, which amounted to about €2 million, Mr Farrugia said.
He said that although the GRTU was against protectionism and in favour of competition, small communities should be allowed certain leeway in which to operate.
The details of the nearly 50-page report into the investigation conducted by the Office of Fair Competition within the Malta Competition and Consumers Affairs Authority will not be divulged, with Fair Competition Minister Jason Azzopardi saying it was protected by law.
He said he himself was not yet aware of the outcome of the investigation.
Dr Azzopardi said he was informed that the decision was reached on December 17 and immediately communicated to the European Commission’s Directorate General on Competition.
That same week, on December 21, the European Commission gave the decision its seal of approval and it was formally filed at the Competition Appeals Tribunal, which is now expected to discuss it and decide on it.
Copies of the decision have been passed on to the interested parties: Liquigas, which asked for the investigation in the first place; the gas distributors; and their representatives.
Speaking during a visit by European Commissioner Tonio Borg to the MCCAA office, Dr Azzopardi said the authority would, on Monday, file an application in court requesting a copy of the decision to be given to him, as minister responsible for the authority, and to the Resources Ministry, responsible for the gas sector.
MCCAA chairman Francis Farrugia also said he did not know the outcome of the investigation.
Dr Azzopardi said that since the investigation began before May 2011, when the new MCCAA law came into force, the previous legislation demanding secrecy in all proceedings had to be applied.
Investigations initiated since then and proceedings before the tribunal are now public. The 1992 agreement gave the 30 distributors geographical exclusivity on gas distribution, with each of them having their own territory in which to deliver gas cylinders.
The distributors, on Thursday, protested in front of Castille, asking the Prime Minister to intervene for the authority to decide on the matter and communicate with them so they would know where their future stood.