Gas distributors are waiting for the government to outline its policy on the issuing of new licences so that they can plan their next move following yesterday’s lightning strike, according to the GRTU.
GRTU official Joe Attard said the government had pledged to outline its position “in the coming days” with the aim of “improving the service to customers”.
Talks were held yesterday between the GRTU, which represents the gas distributors, and the Energy Ministry, following the unannounced stoppage by the distributors.
They gathered in Birżebbuġa, a short distance away from the Liquigas plant, with Mr Attard later saying they were “upset” at the Malta Resources Authority’s decision to issue four licences for fixed-point retailers and an additional two for the distribution of LPG cylinders from trucks.
Distributors want to know how their business will be affected
The industrial action took everyone by surprise, including the GRTU itself, which was only made aware it by this newspaper.
Mr Attard said that during the meeting the ministry outlined the procedure being followed by the MRA on the issuing of licences for the sale of gas cylinders at fixed points and from street vendors.
The authority yesterday told this newspaper that in a liberalised market, government policy was for new applications to be processed and licences issued in line with Legal Notice 249 of 2008 regulating the LPG market.
However, Mr Attard said the distributors wanted to know how their business would be affected by having more licensed sellers, especially for the door-to-door service.
He denied they were seeking to retain a monopoly on the sale of LPG cylinders. They were not against having fixed points for the sale of cylinders so long as there was no safety hazard to nearby residents, he said.
This issue has been at the heart of a long-running dispute dating back to the previous administration when it had tried to liberalise distribution.
This was met with stiff resistance by the GRTU, which used in its favour a 1992 agreement reached with Enemalta under which 30 distributors were given exclusive rights to sell gas cylinders in specific geographical areas. Following the change in government, the MRA issued a public consultation document proposing to retain the territorial exclusivity framework. The outcome of that consultation has not yet been made public.
Meanwhile the Consumers’ Association yesterday urged the government to clarify the situation, saying newspaper reports hinted that some form of agreement had been reached with distributors over the issuing of new licences.
The association called on the MRA and the Consumer Authority to declare their position on the issue in line with their remit to protect consumers.