Government Insists on Door-to-Door Gas Deliveries as PSO Agreements Are Terminated

Strategic Insights -

The Office of the Prime Minister has clarified that the termination of public service obligation (PSO) agreements, which had been in place since 2014, will not disrupt door-to-door deliveries of gas cylinders. The change is aimed at creating a fairer and more competitive level playing field in the distribution market, while ensuring that energy subsidies, including for bottled LPG, will continue.

Key Takeaways:

  • The government has decided to terminate the 2014 PSO agreements that subsidized gas distributors, citing a need for a fairer and more competitive distribution market.
  • The Office of the Prime Minister has assured that consumers' access to door-to-door deliveries will remain unaffected and may even see improvements.
  • The government will continue to subsidize energy prices, including those of bottled LPG, to ensure that prices do not increase.
  • The termination of PSO agreements will open the way for a more competitive distribution system, as argued by the Malta Resources Authority in 2014.
  • The removal of the obligation for distributors to serve households in remote areas may lead to increased competition among distributors.
  • The current system, in which Liquigas dominates the market, has raised competition concerns.
  • The government's decision is justified by the need to address Malta's high levels of energy poverty and reliance on bottled gas.

Statistics:

  • 2014: The year in which the public service obligation (PSO) agreements were introduced.
  • 2-player market: The current state of the market, dominated by Liquigas, which has raised competition concerns.
  • 2014: The year in which the Malta Resources Authority warned about the need to separate distribution from production and supply.
  • High levels of energy poverty: Malta's current situation, cited by the government as justification for the termination of PSO agreements.

Sources:

[MaltaToday, 2014]

[Times of Malta, 2023]

[Malta Resources Authority, 2014]

[Office of the Prime Minister, Official Statement]