Il-GRTU titlob l-Intervent tar-regolatur tal-Energija jindahal fil-kwistjoni taz-Zidiet tal-Fuel

Il-GRTU qed
titlob ukoll lil Office for Fair Competion biex jisgura li qabel ma jkunu
approvati aktar zidiet ikun assigurat li r-Regolamenti Ewropej li jigvernaw lil
monopolji jkunu mhaddma bir-reqqa fir-rigward tal-Enemalta
Corporation.L-ittra tal-GRTU lil MRA u lil OFC qed tintbghat ukoll ma’
din l-istqarrija.

28th October 2004
Mr.J.N.Tabone
Chairman
Malta Resources Authority
Millenia 2nd Floor
Aldo Moro
Rd
Marsa

Mr Marcel Pizzuto
Director General
Office for Fair
Competition
Cannon Road
St .Venera

Dear Sirs,

Energy
Regulator

Fuel Price
The price of fuel products sold by the monopoly
energy supplier Enemalta Corporation keeps rising on a regular basis
notwithstanding the high impact these increases have on enterprises particularly
those in services with a high operational ratio of fuel costs to total costs.
The economic impact these price increases are having on enterprise are too large
to be ignored.

GRTU on behalf of its members is requesting you to inform
us what procedures and regulations are being used by MRA as Energy Regulator to
ensure that the impact on enterprise and consumers is taken seriously into
consideration prior to your approval of these increases. GRTU is also requesting
you to inform us whether you are satisfied that EU regulation and procedures are
being respected to the full. We are interested to know also whether Enemalta is
being subjected by the Office for Fair Competition to the monopolies regime of
assessments prior to approval of price increases.

Electricity
Prices
This issue is great as government is declaring “its” intent to raise
electricity charges. Needless to say it is the monopolist supplier Enemalta
Corporation which has to make a case to Malta Resources Authority as Energy
Regulator. MRA is expected to perform its role according to EU directives and
norms governing the regulation of energy suppliers, while the Office for Fair
Competition is expected to ensure that the monopolist supplier is basing its
claims for increased charges on a rigid assessment of Enemalta’s costings
systems and purchasing procedures and that the claims for increases reflect
pricing and costings in a competitive environment.

GRTU expects Malta
Resources Authority and the Office for Fair Competition to follow acceptable
procedures in assessing claims for increase of charges made by Enemalta
Corporation so as to protect the interests of the consumer and all
stakeholders.

These procedures should include the public notification of
claims by the suppliers and the presentation of arguments supporting these
claims and costings for review by the Regulator and procedures should provide
also for enough time for the hearing of objections and presentation of counter
arguments by all stakeholders.

Needless to say in the field of energy
supplies it is your duty to:

ï‚· Promote efficiency
ï‚· Promote
sustainable competition and
ï‚· Give the maximum benefit to end users
ï‚·
Affordability of services
ï‚· Entities do not charge excessive prices
ï‚·
Introduce retail price cap measures
ï‚· Orient tariffs towards costs or prices
in comparable markets.

Moreover you are to ensure that prices are based
on:

i) Transparency
ii) Consistency
iii)
Objectivity

GRTU retains its right to present its complaints to the
European Commission should it feel that EU regulations and norms on competition
and regulation of monopolies are not fully adhered to in
Malta.