(Adds government, Liquigas statements)
Gas distributors are to launch industrial action as from tomorrow because of a dispute involving the two LPG gas suppliers, GRTU officials said today.
The government said in a statement later today that had asked the Malta Resources Authority to mediate in the issue.
Liquigas said that competition should be encouraged it was only reasonable that it should be able to determine how its products were distributed.
The GRTU is insisting that the government had given it a commitment that the distributors would retain the right to distribute gas cylinders of all companies. However one of the companies is refusing that arrangement.
GRTU director-general Vince Farrugia said that as from tomorrow there will be no door to door distribution of gas cylinders. There will also be no sales from fixed points.
The action, he said would only be called off if an agreement was reached with the government by tonight.
Mr Farrugia said licences were issued to the 30 distributors in 1992 by Enemalta. They were tied to a territory for each distributor. The licence provided that they were to work for one or more gas suppliers.
Malta now had two gas suppliers - Liquigas and Easygas. The former was objecting to the distributors distributing gas cylinders for the two companies.
Mr Farrugua insisted that the companies could not distribute gas cylinders unless that was made through the licensed distributors. The GRTU, therefore, was insisting that the existing licences should be honoured.
Otherwise, Mr Farrugia said, compensation of €6 million should be given to the distributors.
GOVERNMENT STATEMENT
The government has requested the Malta Resources Authority to mediate in the issue for an agreement to be reached improving the gas distribution system while giving primary consideration to giving consumers the best possible service at the least environmental impact.
LIQUIGAS STATEMENT
Liquigas said it regretted the inconvenience being caused by the strike called by the GRTU.
It said that following the privatisation of the LPG business in November 2008, Liquigas Malta Ltd succeeded Enemalta in the standard distribution agreement that Enemalta had with 30 distributors across Malta and Gozo, which granted the distributors exclusive territories.
The Malta Resources Authority has now issued new licences to a third party to distribute “non Liquigas LPG”. Competition in bulk distribution is under way and competition in cylinders will start shortly, Liquigas said.
The distributors wish to preserve their territorial exclusivity in the cylinder distribution market by insisting that they should distribute both sources of supply.
Liquigas said that competition should be encouraged at all stages of the distribution chain and market forces should be allowed to play their part.
However, it said it had the right to protect its commercial interests and it was only reasonable that it should be able to determine how its products were distributed.