The Chamber of Small and Medium Enterprises, GRTU has criticised the timing of the increase in LPG (gas) saying that Enemalta should have waited for the reduction of electricity tariffs before coming up with such increases.

Director general Vince Farrugia said that the increase had been long in the air and it reflected the high cost of operations for a fully functioning bottling plant.

Unfortunately, the liberalisation of the provision of gas took too long so consumers were also having to cover the cost of the gross inefficiencies in the local bottling plant.

Mr Farrugia said it had insisted all along that the subsidy which was permissible under EU regulations should not be removed at one go as the consumer could not support a high increase in gas and the maintenance of the current high level of electricity tariffs.

He said it had successfully intervened for the increase in gas prices to not be as hefty as originally indicated "but we feel that the timing of the increase is very bad and Enemalta should have first waited for the reduction of electricity tariffs before introducing these increases".

The GRTU said it was also critical of Malta Resources Authority which did not insist on an Economic Impact Assessment.

"Once again MRA is dominant by its absence.

"GRTU strongly believe that establishments that are heavy users of gas are being additionally penalised at a time when as a result of an economic recession they are having to sustain their present level of employment through vanishing profits.

"Once again the timing of an important action is faulty as it does not reflect the current economic situation. Enemalta is a state corporation and the regulator, MRA should be more conscious of what consumers and business users can afford to pay," Mr Farrugia said.

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