Gas distributors are asking for a “long overdue” raise, but say they have not heard back from the authorities despite repeated requests.

Addressing a press conference, Joe Attard from the Chamber of Small and Medium Enterprises GRTU, representing distributors, said the authorities were not meeting their obligations.

He said the Regulator for Energy & Water Services had not reviewed the mark up that gas distributors were paid for delivering canisters of gas across the island for some six years.

The current markup on gas cylinders stands at around 13 cents per kilo. Mr Attard said distributors were asking this to increase to 17.5cents per kilo.

Asked who would finance this increase and whether it would be borne by the consumer, Mr Attard, said that would have to be hashed out by the private sector, regulator, and the government.

“We have exchanged countless emails and had meeting upon meeting with REWS but we have heard nothing by way of an answer to our request. As things stand today, we are looking at yet another year without an increase for distributors,” Mr Attard said.

He later added that the agreement signed between the authorities and the distributors made it clear that the rates would have to be reviewed.

A public service obligation concession was signed a few days before the 2014 European Parliament election. Under the agreement, 31 door-to-door gas cylinder distributors would be compensated at 13c3 per kilo if sales dropped below those of 2013.

Although under EU rules state aid is forbidden, an exception can be made if a particular sector is declared as being of “general economic interest”.

In this case, the government justified its decision saying it wanted to guarantee a gas distribution service even in remote areas that were not deemed to be commercially viable to serve.

The agreement came into force a year after the competition watchdog had declared null a territorial exclusivity agreement that went back to 1992.

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