Liquigas insists consumers should have right of choice

Liquigas Malta decribed GRTU-registered gas distributors as a "cartel" and accused them of resisting competiition.

The company said it believes in "competition as it is through competition that Maltese consumers can benefit not only in terms of price but also in respect of quality of service."

The 23 gas distributors represented by GRTU are operating as a cartel and are resisting competition to the detriment of the consumer, Liquigas said.

In February 2009, Liquigas Malta Ltd. took over the distribution and marketing of LPG from Enemalta, whose Gas Division still stores and bottles liquefied petroleum gas in cylinders and bulk service on behalf of Liquigas.

The company pointed out that the 23 gas distributors represented by GRTU had a territorial agreement dating back to 1992 with Enemalta Corporation that is no longer valid as it was declared null and void by the Office for Fair Competition (OFC).

"It is not legally possible for distributors to retain geographical exclusivity as this conflicts with Maltese competition law and also with Article 101 of the Treaty on the Functioning of the European Union. This Treaty specifically prohibits cartels and other agreements that could disrupt unhindered competition and free choice in the EU market."

Furthermore, the company said that five years later, after acquiring the business from Enemalta, Liquigas Malta has respected all its obligations as listed in the agreement signed with the Malta Government in 2008.

However, Liquigas Malta said it was still waiting for its right to have its own distribution model to be honoured so as to ensure the best level and quality of service to their customers.

Liquigas Malta CEO Roberto Capelluto said that consumers in Malta today want to be able to choose from where and from whom they can get the best service.

"The current GRTU-backed monopolistic attitude, based on the outdated idea of geographical area exclusivity, forbids other distributors prepared to offer a better service to the community. GRTU's proposal also goes directly against the consumers' right of choice from where to obtain the best possible distribution service," he said.