LIQUEFIED PETROLEUM GAS MARKET REGULATIONS

SUBSIDIARY LEGISLATION 545.20

LIQUEFIED PETROLEUM GAS MARKET

REGULATIONS

7th October, 2008

LEGAL NOTICE 249 of 2008, as amended by Legal Notices 37 of 2010,

125 and 465 of 2011, 101 and 184 of 2012, and 175 of 2015; Act XXV of

2015; and Legal Notices 134, 170 and 235 of 2016.

(1) The title of these regulations is the Liquefied

Petroleum Gas Market Regulations.

(2) The scope of these regulations is to regulate the Liquefied

Petroleum Gas Market in Malta.

(3) These regulations are being made for the safeguarding of

the public interest and public safety. Any requirements contained

therein including those relating to authorisations and to services are

made for overriding reasons relating to public interest.

Substituted by

L.N. 37 of 2010.

Regulation 7(5)

Amended by

L.N. 175 of 2015;

L.N. 170 of 2016.

Authorisation application fee payable in respect of an application for an

Authorisation to carry out the activity of retail of portable cylinders filled with

LPG, including retail from a fixed point of sale

The applicable fee for applying for an authorisation for carrying out the activity of

retail of portable cylinders filled with LPG, including retail from a fixed point of sale

is of €500;

Authorisation to operate a fixed piped network

The applicable fee for applying for an authorisation for operating a fixed piped

network shall be as follows

(i)

for a fixed piped network with 2 metered outlets - €50.00;

(ii) for a fixed piped network with a number of metered outlets between 3

and 5 - €100.00;

(iii) for a fixed piped network with a number of metered outlets between 6

and 10 - €200.00;

(iv) for a fixed piped network with a number of metered outlets between 11

and 15 - €300.00;

(v) for a fixed piped network with over 15 metered outlets - €500.00;

Authorisation to operate a secondary storage facility of LPG

The applicable fee for applying for an authorisation for operating a secondary

storage facility of LPG is of €50;

Authorisation to carry out the activity of a bulk LPG distributor

The applicable fee for applying for an authorisation for carrying out the activity of

a bulk LPG distributor is of €500;

Authorisation to operate an autogas retail station

The applicable fee for applying for an authorisation for operating an autogas retail

station is of €500.

(1) Unless stated otherwise in these regulations, the

definitions in the Regulator for Energy and Water Services Act

shall apply.

(2)

In these regulations, unless the context otherwise requires

"applicant" means an applicant for an authorisation issued by the

Regulator under these regulations;

"autogas" means liquified petroleum gas used for the propulsion

of motor vehicles;

"autogas retail station" means an authorised facility which has

been authorised by the Regulator to store and retail autogas and

which may be subject to any such conditions as the Regulator may

establish;

"authorised person" means a final customer authorised by the

Regulator to operate a secondary storage facility of LPG in terms

of these regulations;

"authorised provider" means a provider authorised by the

Regulator to import and, or wholesale LPG, or to operate a primary

storage facility or to bottle LPG in terms of the Petroleum for the

Inland (Wholesale) Fuel Market Regulations or to wholesale, retail,

transport and, or distribute LPG in bulk by means of a bulk LPG

distributor vehicle or to distribute LPG by means of a fixed piped

network or to retail LPG, including retail of portable cylinders

filled with LPG , in terms of these regulations, or a service provider

who is authorised to operate under any law in force in a Member

State of the European Union or a state which is a participant to the

European Economic Area

Provided that whenever the Regulator is required to

exercise its functions under these regulations in relation to

offshore storage facilities, the Regulator shall act in collaboration

with the authority responsible for maritime matters;

"authorisation" means any authorisation granted under these

regulations, and in relation to services and service providers means

a permit, licence, warrant, appointment, concession or any formal

decision concerning access to a service activity or the exercise

thereof

Provided that it shall mean an authorisation granted under

the Petroleum for the Inland (Wholesale) Fuel Market Regulations

when it is issued in regard to LPG;

"authorised facility" means a facility in respect of which an

authorisation has been issued and includes all buildings, tanks,

pipework, pumps, dispensers, electrical equipment, appliances,

drainage, ancillary equipment, forecourt area and any other asset

within that part of the facility relevant to LPG;

"bulk LPG distributor" means a person who in terms of an

authorisation issued by the Regulator is authorised to transport and,

or distribute LPG in bulk and, or retail LPG in bulk to authorised

facilities and, or to wholesale, transport and, or distribute LPG in

bulk to an autogas retail station;

"bulk LPG distributor vehicle" means a vehicle (including its

contents) as defined in the Motor Vehicles (Carriage of Dangerous

Goods by Road) Regulations, designated for the purpose of

transporting and, or distributing LPG to authorised facilities,

secondary storage facilities of LPG and autogas retail stations;

"competent LPG installer" means a person who is approved by

the Regulator and who is suitably trained, has sufficient

knowledge, experience and capability as approved by the Regulator

to

(a) construct equipment and, or sites intended to be

designated by the Regulator as authorised facilities;

and

(b) carry out material alterations to authorised facilities;

and

(c) carry out other work of a technical nature that is

complimentary or ancillary to the above;

"competent person" means a person who is approved by the

Regulator and who

(a) practices the profession of an inġineer under the

Inġiniera Act; and

(b) who is suitably trained, has sufficient knowledge,

experience and capability as approved by the

Regulator to

(i) carry out assessment inspections of authorised

facilities;

(ii) supervise material alterations to authorised

facilities;

(iii) certify in writing that authorised facilities are

being maintained and operated as prescribed in

any authorisation conditions and, or guidelines

and, or Codes of Practice duly approved by the

Regulator;

(iv)

certify in writing the design, construction,

testing and commissioning of equipment and, or

sites intended to be designated by the Regulator

as authorised facilities;

(v)

carry out other work of a technical nature that is

complimentary or ancillary to the above;

"establishment" means the actual pursuit of an economic activity

by a service provider for an indefinite period and through stable

infrastructure from where the business of providing services is

actually carried out;

"final customer" means any natural or legal person purchasing

LPG for his own use and not resale or transfer purposes;

"fixed piped network" means an authorised facility used for the

storage and, or distribution and retail of LPG by means of a storage

facility linked with a piped network;

"fixed point of sale" means a specific area designated by the

Regulator, and duly approved by any other competent authority and

in consultation with any relevant authority, from where a person

duly authorised by the Regulator may retail portable cylinders

filled with LPG;

"inspector" means any employee or officer of the Regulator or

any other person duly appointed and authorised in writing by the

Regulator in accordance with the provisions of the Act to inspect

and check compliance with these regulations and any authorisation

condition;

"LPG" means liquefied petroleum gas, composed of either

propane or butane, according to BS 4250: 1997 or the equivalent or

a mixture of both gases according to MSA EN 589;

"material alteration" means any alteration which, within the limits

of the applicability of the authorisation, may in the opinion of the

Regulator reasonably affect the operation of an authorised facility and

includes the addition, change, removal, repair, replacement or

cessation of use of any equipment, whether electrical or mechanical;

"Member State" means a member state of the European Union;

"the Minister" means the Minister responsible for resources;

"overriding reasons relating to public interest" means reasons

recognised as such in case law of the European Courts of Justice

and which reasons present a justification for the issue of an

authorisation and, or the issue of a condition thereto and, or to any

other policy decision taken in terms of such authorisation, when

such authorisation, and, or condition and, or policy decision thereto

could not have been issued or taken under normal circumstances

but for such overriding reasons relating to public interest which

include any of the following grounds

(a) public policy, public security, public safety and public

health, provided that, these grounds shall be

interpreted within the meaning of Article 46 and

Article 55 of the Treaty;

(b) the maintenance of order in society;

(c) social policy objectives;

(d) the protection of recipients of services;

(e) consumer protection;

(f)

the prevention of fraud,

(g) the prevention of unfair competition; and

(h) the protection of the environment;

"owner" means any natural or legal person established within the

European Union, who lawfully holds certificates of conformity

assessment of an LPG cylinder and who originally placed the said

cylinder on the market;

"person" includes an individual, an undertaking, a body or other

association of persons, whether such body or association is a

juridical person or not;

"portable cylinders" or "cylinders" means transportable

containers suitable for use with LPG and which conform to the

Transportable Pressure Equipment Regulations;

"recipient" shall have the same meaning as it has under the

Services (Internal Market) Act;

"Regulator" means the Regulator for Energy and Water Services

established by the Regulator for Energy and Water Services Act;

"primary storage facility of LPG" means an authorised facility

approved by the Regulator and issued with an authorisation for a

primary storage facility in terms of the Petroleum for the Inland

(Wholesale) Fuel Market Regulations, and which is used by the

authorised provider as aforesaid to store LPG

Provided that such an authorised facility wherein LPG is

stored in bulk shall be onshore and fixed, and for the purposes of

this definition "fixed" shall mean a permanently fixed structure

underground or aboveground at a defined site;

Provided further that the Regulator may, when reasonably

necessary, authorize primary storage facilities of LPG which are

not onshore and, or fixed;

"retail" means the sale of LPG to final customers;

"secondary storage facility of LPG" means a storage facility, not

being a primary storage facility, with a minimum storage capacity

of either more than 150 kg of LPG or any six or more

interconnected portable LPG cylinders, whichever is the lower

Provided that a storage facility shall not be a secondary

storage facility of LPG, unless the LPG therein stored is for the

authorised person’s own exclusive use;

"service" means any self-employed activity performed for

economic considerations;

"service provider" means any natural person who is a national of

a Member State, or any legal person established in a Member State,

who offers or provides a service;

"t he Treaty" m eans t he Treaty establishing the Euro pean

Community.

Substituted by

L.N. 37 of 2010.

Regulation 8(5)

Amended by

L.N. 175 of 2015.

Authorisation fee payable in respect of an

Authorisation to carry out the activity of retail of portable cylinders filled with

LPG, including retail from a fixed point of sale

The applicable authorisation fee for carrying out the activity of retail of portable

cylinders filled with LPG, including retail from a fixed point of sale is of €50 per

annum;

LIQUEFIED PETROLEUM GAS MARKET

Authorisation to operate a fixed piped network

The applicable authorisation fee for operating a fixed piped network shall be as

follows

(i)

for a fixed piped network with 2 metered outlets - €50.00;

(ii) for a fixed piped network with a number of metered outlets between 3

and 5 - €100.00;

(iii) for a fixed piped network with a number of metered outlets between 6

and 10 - €200.00;

(iv) for a fixed piped network with a number of metered outlets between 11

and 15 - €300.00;

(v) for a fixed piped network with over 15 metered outlets - €500.00;

Authorisation to operate a secondary storage facility of LPG

The applicable authorisation fee for operating a secondary storage facility of LPG

is of €50 per annum;

Authorisation to carry out the activity of a bulk LPG distributor

The applicable authorisation fee for an authorisation for carrying out the activity

of a bulk LPG distributor is of €500 per annum and €50 per bulk LPG distributor

vehicle;

Authorisation to operate an autogas retail station.

The applicable authorisation fee for an authorisation for operating an autogas

retail station is of €500 per annum and €50 per nozzle.

The above mentioned fee of €500 per annum for operating an autogas retail station

shall not be due by the holders of an authorisation to operate a petroleum filling

station.

(1) An authorised provider who is the holder of an

authorisation -

(a) to carry out the activity of an importer and, or

wholesaler of LPG or to bottle or load LPG, or to carry

out all the aforementioned activities, or some of them,

simultaneously;

(b) to operate a primary storage facility of LPG,

shall be required to have a storage facility used for the storage of

LPG with a minimum storage capacity of 50 tonnes, as specified in

Column 2 of Part 2 of the First Schedule of the Control of Major

Accident Hazard Regulations.

(2) The 50 ton storage facility mentioned in sub-regulation (1)

need not be the property of the authorised provider

Provided that the said 50 ton storage facility shall not be

committed or contracted to any other authorised provider.

Added by

L.N. 125 of 2011.

Regulation 2

Amended by

L.N. 175 of 2015;

XXV. 2015.41.

Fee due to the Regulator for approval as a competent person ........................... €35

Fee due to the Regulator for approval as a competent LPG installer .......................

€35

An authorised provider authorised by the Regulator to

import or wholesale or store and bottle LPG shall maintain a

minimum stock level equivalent to 20% of the total storage

capacity of his storage facility of LPG. This minimum level of 20%

may include, at the discretion of the Regulator, a vessel loaded with

LPG for departure to or in transit to Malta, when warranted by the

size of the facility and the scale of operations involved

Provided that the authorised provider shall also hold in

stock, at any time, as part of his total storage capability, a minimum

guaranteed stock of LPG equivalent to his total average sales in

Malta and Gozo during eight days of the previous calendar year. In

calculating the amount to be held as minimum guaranteed stock of

LPG, the Regulator shall take into account any seasonality factor

which may be present. The authorised provider shall not be

required to hold this minimum guaranteed stock of LPG when such

amount is less than the minimum stock level equivalent to 20% of

the total storage capacity of his primary storage facility of LPG

Provided further that the minimum guaranteed stock of

LPG required to be held by the authorised provider in terms of

these regulations, shall be held, without prejudice to any obligation

incumbent on the authorised provider, in regard to the holding of

minimum security stocks of petroleum products, emanating from

any national or international obligation.

An authorised provider issued with an authorisation by the

Regulator to wholesale or store and bottle LPG shall hold, at any

time, a minimum storage capacity of LPG, equivalent to a one-day

amount of supplies in already-filled cylinders, to be held as

operational stock, which one day amount of supplies shall be

calculated in accordance with the authorised provider’s total sales

in t h e p r e v io u s c a l e n da r y e a r. I n c a l c u la t i n g t h e m i n i m u m

guaranteed stock of LPG to be held in already filled cylinders, the

Regulator shall take into account any seasonality factor which may

be present

Provided that the amount held in already-filled cylinders

may be set-off against the amount required to be held in terms of

regulation 4.

(1) Nothing shall prohibit an authorised provider who is

authorised to import and, or wholesale LPG and, or an authorised

provider who is authorised b y the Reg ulator to r et ail LPG,

including retail of portable cylinders filled with LPG, from

collecting a portable cylinder from a final customer and from

returning such LPG cylinder on behalf of such final customer, to

the authorised provider who is authorised to import and, or

wholesale LPG and who is the owner of such portable cylinder

Provided that the authorised provider who is authorised to

import and, or wholesale LPG and, or the authorised provider who

is authorised by the Regulator to retail LPG, including retail of

portable cylinders filled with LPG, shall return portable cylinders

collected from final customers at his own expense, to the

authorised provider who is authorised by the Regulator to import

and, or wholesale LPG and who is the owner of such portable

cylinder within intervals of seven calendar days from each other

Provided further that the burden of proving that any

portable cylinders collected from final customers have been

returned to the owner of such portable cylinder, shall lie on the

authorised provider who is authorised to import and, or wholesale

LPG and, or the authorised provider who is authorised by the

Regulator to retail LPG, including retail of portable cylinders filled

with LPG and who is not the owner of the portable cylinder.

(2) Portable cylinders collected from a final customer in terms

of sub-regulation (1) may not be used or handled in any manner

whatsoever, other than for the purposes of their return to the

authorised provider who is authorised by the Regulator to import

and, or wholesale LPG and who is the owner of such portable

cylinders. Prior to their return, such portable cylinders shall be

stored at a facility and under such conditions as approved by the

Regulator and in accordance with any applicable legislation,

standards and Codes of Practice.

(3) The authorised provider who is authorised to import and, or

wholesale LPG and, or an authorised provider who is authorised by

the Regulator to retail LPG, including retail of portable cylinders

filled with LPG, who collects portable cylinders from a final

customer in terms of sub-regulation (1) shall inform the Regulator

of such collection within seven calendar days from the date of the

collection of such portable cylinders.

(4) An authorised provider who is authorised by the Regulator

to import and, or wholesale LPG may require a final customer to

effect a deposit as a guarantee for the restitution of a portable

cylinder delivered to such final customer. The amount of such

deposit shall as a minimum be of ten euro (€10) for each cylinder

delivered to a final customer. The aforementioned authorised

provider shall reimburse the final customer or any other person

acting on his behalf, for the amount deposited upon the permanent

return for the purposes of restitution of the portable cylinder

referred to in sub-regulation (1) or for a higher amount when such

final customer has in his possession a receipt indicating such

higher amount, including when such receipts have been issued to

final customers prior to the entry into force of this regulation

Provided that final customers who are not in possession of a

receipt as aforesaid shall be reimbursed by the authorised provider

who is the owner of such portable cylinder the amount of five euro

(€5) for the permanent restitution of a portable cylinder delivered

to such final customer

Provided further that the deposit as a guarantee for the

restitution of a portable cylinder of a capacity of twelve (12)

kilograms delivered to a final customer or any other person acting

on his behalf, shall in all cases be of fifteen euro (€15) and the

reimbursement of such deposit shall also be of fifteen euro (€15)

when a final customer, or any other person acting on his behalf, is

not in possession of a receipt. In the event that a final customer is

in possession of a receipt indicating a higher amount than fifteen

euro (€15), then such final customer, or any other person acting on

his behalf, shall be reimbursed such higher amount. The effects of

this proviso shall apply to all portable cylinders returned for the

purpose of restitution after the 29th of April 2016, irrespective of

the date, before or after that date, when the portable cylinder was

delivered to a final customer.

(5) The deposit referred to in sub-regulation (4) may be

effected by the final customer either directly to the authorised

provider who is authorised by the Regulator to import and, or

wholesale LPG or indirectly through an authorised provider who is

authorised by the Regulator to retail LPG, including retail of

portable cylinders filled with LPG.

(6) The owner of a portable cylinder shall, upon the payment of

a deposit for a portable cylinder by a final customer referred to in

sub-regulation (4), issue a receipt to a final customer, which receipt

shall as a minimum contain details regarding the ownership of the

portable cylinder and the final customer’s rights and obligations in

terms of such deposit, and the capacity in kilograms of such

portable cylinder.

(7) The final customer may permanently return the portable

cylinder for the purposes of restitution to the authorised provider

who is authorised by the Regulator to import and, or wholesale

LPG and who has delivered the portable cylinder to the final

customer through an authorised provider who is authorised by the

Regulator to retail LPG, including retail of portable cylinders filled

with LPG.

(8) Nothing in these regulations shall impinge on the

ownership rights of the authorised provider who is authorised by

the Regulator to import and, or wholesale LPG and who is the

owner of the said LPG cylinder.

(9)

Cylinders shall be indelibly marked showing as a minimum

the name of the owner of the LPG cylinder and any other

requirement imposed under any other law.

(1) The following operations and activities shall require an

authorisation

(a) the retail of portable cylinders filled with LPG,

including retail from a fixed point of sale;

(b) operation of a fixed piped network;

(c) operation of an autogas retail station;

(d) activity of a bulk LPG distributor;

(e) operation of a secondary storage facility of LPG.

(2) The Regulator may grant an authorisation and, or

authorisations for the

(a) carrying out of the activity of a bulk LPG distributor;

(b) operation of a fixed piped network;

(c) operation of a secondary storage facility of LPG;

(d) carrying out of the retail activity of portable cylinders

filled with LPG, including retail from a fixed point of

sale;

(e) operation of an autogas retail station

Provided that such person or authorised provider in whose

favour an authorisation is granted, shall satisfy any such conditions

as may be specified in the authorisation, in these regulations and in

any other applicable laws.

(3) In the case of a secondary storage facility of LPG

consisting of six, but of not more than eight interconnected

portable LPG cylinders, a notification submitted in the form

established by the Regulator shall be required, instead of an

application for the issue of an authorisation for a secondary storage

facility. After the receipt of such notification, the Regulator may

require the applicant to submit certification of the storage facility

by a competent person and written confirmation of the secondary

storage facility of LPG having been installed by a competent LPG

installer.

(1) Authorisations shall be issued by the Regulator in

respect of the execution of the operations, activities and practices

referred to in these regulations and shall include the terms and

conditions for the execution of such operations, activities and

practices.

(2) An authorisation issued by the Regulator shall be in writing

and, unless cancelled, suspended or revoked in accordance with

any condition contained in it or in accordance with these or other

regulations, it shall continue to be in force for such period as may

be specified in, or determined by or under the authorisation.

(3) Nothing in these regulations shall prohibit the Regulator

from issuing a single authorisation incorporating more than one

authorisation.

(4) Authorisations, unless revoked, shall be valid for a period

of years equal to

(a) ten years in the case of an authorisation to operate an

autogas retail station;

(b) six years in the case of an authorisation for the

carrying out of the activity of a bulk LPG distributor;

(c) six years in the case of an authorisation for the

carrying out of the retail activity of portable cylinders

filled with LPG, including retail from a fixed point of

sale;

(d) twenty years in the case of an authorisation for the

operation of a fixed piped network;

(e) ten years in the case of an authorisation for the

operation of a secondary storage facility of LPG.

(5)

Any person who wishes to -

(a) carry out of the activity of a bulk LPG distributor;

(b) operate a fixed piped network;

(c) operate a secondary storage facility of LPG;

(d) carry out the retail activity of portable cylinders filled

with LPG including retail from a fixed point of sale;

(e) operate an autogas retail station,

shall submit an application in writing to the Regulator in such form

and manner as the Regulator may prescribe. A non-refundable

application fee as established in the First Schedule shall be paid to

the Regulator with the authorisation application.

(6) The Regulator shall establish its procedure, which shall be

made publicly known, for the purposes of determining an

application, for the

(a) carrying out of the activity of a bulk LPG distributor;

(b) operation of a fixed piped network;

(c) operation of a secondary storage facility of LPG;

(d) carrying out of the retail activity of portable cylinders

filled with LPG, including retail from a fixed point of

sale;

(e) operation of an autogas retail station.

(7) The Regulator shall communicate to the applicant in

writing within a reasonable time, which reasonable time shall not

be of more than three months from the date of receipt of a valid

application, any decision taken concerning an application for an

authorisation or an application for the renewal of an authorisation,

or of any valid reason impeding the Regulator to reach such a

decision.

(8) Upon expiry, an authorisation may be renewed, and an

application for renewal of the authorisation, in such form and

manner as the Regulator may require, shall be submitted in writing

to the Regulator, six months prior to the date on which the

authorisation expires. The Regulator may modify, amend, replace,

add or delete any authorisation condition in the renewed

authorisation and add specific conditions relevant to each

individual authorisation as the Regulator considers to be

reasonably justified in the circumstances.

(9) An authorisation issued by the Regulator under these

regulations shall not exempt the authorised provider from the

requirement of obtaining any other authorisation or permit as may

be required under any other law.

(1) The first authorisation fee shall be due by the

authorised provider immediately upon the granting of the

authorisation and thereafter, every year on the anniversary of the

grant of such authorisation or on any other date as the Regulator

may reasonably establish

Provided that the authorisation shall not be valid until the

payment of the first authorisation fee is made.

(2) The amount of the authorisation fee shall be according to

the Second Schedule and shall be paid to the Regulator together

with an application for an authorisation.

(3) If any authorisation fee payable under sub-regulation (2) is

not paid within thirty days, the Regulator shall after the lapse of

such time, communicate with the authorised provider whose

authorisation fee has not so been paid informing him about his

failure to pay such fee.

(4) The Regulator shall be deemed to have complied with sub-

regulation (3) if such communication is sent by registered post, to

the usual or last known address of the authorised provider whose

authorisation fee has not so been paid.

(1) If any authorisation fee is not paid within thirty days

after the date upon which the communication as aforesaid in

regulation 8(4) has been sent by registered post, the authorisation

to which it relates shall cease to be in force, and if the authorised

provider to whom it was granted wishes again to carry out the

activity of a bulk LPG distributor, to operate a fixed piped network,

to operate a secondary storage facility of LPG, to carry out the

activity of retail of portable cylinders filled with LPG, including

retail from a point of sale, to operate an autogas retail station, he

shall then be required to apply for a new authorisation.

(2) In considering any such application, the Regulator may take

into consideration the previous failure of the applicant to pay the

authorisation fee and of any explanation regarding that failure

which the applicant may submit to the Regulator.

(1) The aforementioned criteria shall be published by the

Regulator.

(2) In taking a decision in respect of the grant, issue,

amendment or renewal or any other matter pertaining to an

authorisation issued under these regulations, the Regulator shall

require the applicant to meet the following criteria, when

appropriate

(a) compliance by the applicant with all other relevant

permits and authorisations, however so described,

issued by any other public authority;

(b) the capability of the applicant to ensure safety

conditions, in the context of the authorisation being

applied for;

(c) private and professional integrity of the applicant;

(d) protection of the health and safety of employees;

(e) protection of the environment;

(f)

record of compliance with these regulations and any

other relevant laws by the person with regard to whom

the decision shall be made;

(g) suitability of the facility with regard to safety, health,

security, hazardous substances, environment, land use

and planning requirements;

(h) the need for facilities and services to be provided for

consumers at the facility concerned and the extent to

which the interests of consumers shall be served;

(i)

any other matter relevant to the orderly provision, of

LPG in Malta; and

(j)

the public interest in general

Provided that when taking account any of the

aforementioned, the Regulator shall give a justification for its

decision. Any such decision shall be taken in conformity with any

applicable laws and regulations and in an objective, transparent and

non-discriminatory manner

Provided further that in case of failure by the Regulator to

inform the applicant regarding any decision taken concerning

access to a service activity or the exercise thereof, including refusal

or withdrawal of an authorisation, shall not mean in any manner

w h a t s o e v e r, t h a t t h e R e g u l a t o r h a s t a c i t l y g r a n t e d s u c h

authorisation and that the applicant has automatically been granted

access to a service activity or the exercise thereof.

(1) The Regulator shall approve an application for the

issue of an authorisation or, if an authorisation has been issued, it

shall approve an application for the renewal of an authorisation,

when

(a) the Regulator considers that the applicant has satisfied

the criteria required or requested to be met in

regulation 10;

(b) the application contains all such information requested

by the Regulator in the application form or any other

additional information that the Regulator may request

from the applicant for the purpose of determining the

application for the authorisation;

(c) the application is accompanied by such application fee

as specified in accordance with these regulations.

(2) The authorised provider shall inform the Regulator of any

ch anges relat ing to hi s servi ce acti vit y w hich resu lt in the

conditions for his authorisation no longer being met and the

creation of subsidiaries whose activities fall within the scope of the

authorisation and, or the authorisation scheme.

(1) The Regulator shall have the power to include in an

authorisation issued under these regulations any such conditions as

the Regulator considers requisite or suitable. Any such conditions

shall be fair, objective, transparent and non-discriminatory

Provided that, any condition for the granting of an

authorisation for a new establishment shall not duplicate

requirements and controls which are equivalent or essentially

comparable as regards their purpose to which the service provider

is already subject in another Member State or in Malta.

(2) Each of the individual authorisations described in

regulation 6(1) shall have a minimum set of general conditions

Provided that special conditions may be attached to any

authorisation issued under these regulations.

(3) The authorised provider shall at all times comply with these

regulations and with the conditions of his authorisation.

(4) The conditions included in the authorisation may contain,

but not necessarily be limited to, provisions regarding

(a) the grant and term of the authorisation;

(b) suspension, variation and transfer conditions of the

authorisation;

(c) compliance requirements to conditions, directions,

management letters, standards, guidelines, codes of

practice or rules given by the Regulator or as may be

established at law;

(d) the obligations of the authorised provider, including

but not limited to consumer service obligations and

holding of minimum security stocks of LPG;

(e) the promotion of the efficient operation of the LPG

market and protection of consumers in terms of the

lowest possible prices combined with the highest

quality of the products;

(f)

monitoring and recording of the authorised operations;

(g) reporting, auditing and submission of information to

the Regulator;

(h) inspection, making of copies and taking of extracts

from books and records held by the authorised

provider and carrying out of measurements and tests in

relation to any facility, assets or plant provided these

are carried out by an approved inspector;

(i)

assessment and auditing of operations, activities and

practices and their compliance to authorisation

conditions;

(j)

regulation of subsidiary companies and, or companies

executing part of the regulated operations, activities

and practices

Provided that the Minister may give directions in writing of

a policy nature to the Regulator in relation to any of the above

matters that appear to him to affect the public interest.

(5) Any person

granted

an

authorisation

under

these

regulations shall

(a) comply with any direction given by the Regulator as to

such matters as are specified in the authorisation or are

of a description so specified;

(b) execute the regulated operations, activities and

practices in accordance with such authorisation

conditions;

(c) act in accordance with any requirements as are

specified in the authorisation or are of a description so

specified; and

(d) comply with the decisions or directions issued by the

Regulator for the purposes of complying with any

international obligation of Malta.

(1) Inspectors shall be authorised to enter and inspect any

authorised facility in which LPG is, stored, blended, or is under

transport and inspect all tanks, pipework, pumps, dispensers,

electrical equipment, drainage, ancillary equipment and other

equipment or assets directly or indirectly connected with the

carrying out of the authorisation conditions in order to ascertain if

they are in accordance with the conditions as prescribed in the

authorisation.

(2) Every inspector of the Regulator so authorised shall at all

reasonable times be allowed unrestricted access to the authorized

facility, for the purpose of ascertaining whether the conditions

attached t o th e autho risati on are being dul y observed. Th e

authorised provider shall give all reasonable assistance which such

inspector may require for that purpose.

(1) Authorised providers shall keep records of all

transactions in respect of each authorisation they hold and other

information about all LPG transactions permitted under the

authorisations being in force and where applicable, to keep

originals of all audited accounts at their principal place of business

for the purpose of auditing by the Regulator. The Regulator may

make copies or take extracts of such records, whether in physical or

digital form, or require the authorised provider to provide same

Provided that the Regulator shall treat as confidential any

informat io n o btai ned from t he auth orised pro vi der and th e

authorized provider shall communicate to the Regulator as being

commercially sensitive and which the Regulator accepts to be so,

and in doing so the Regulator shall not divulge any such

information unless required to do so by law or by a court order.

(2)

The Regulator shall have the right to publish information

regarding activities and statistics related to LPG

Provided that the aforesaid publication shall not refer to

any specific authorised provider and shall be in accordance with

data protection laws.

(1) Without prejudice to any other provisions of these

regulations or any other law, all authorised facilities designed and

constructed after the entry into force of these regulations have to be

designed and constructed in accordance with standards and

specifications prescribed by the Regulator and, or any other

authority competent at law.

(2) Once the design and construction have been carried out, a

competent person must submit in writing to the Regulator a

certification that all standards and safety requirements imposed on

the authorised facility have been abided by and including a signed

declaration to the effect that such authorised facilities have been

constructed by a competent LPG installer.

(3) No person other than a competent LPG installer, shall

construct an authorised facility or a facility required to be so

authorised or carry out any material alteration to an authorised

facility under these regulations

Provided that such competent LPG installer shall be

supervised by a competent person in the construction of an

authorised facility or a facility required to be so authorised under

these regulations.

(1) The authorised provider shall not undertake or permit

to be undertaken any material alterations to the authorised facility,

unless the written consent of the Regulator has been obtained.

(2) The approved consent to the material alterations by the

Regulator under these regulations shall not exempt the authorized

provider from the requirement of obtaining any other written

approval or permit required under any other law.

(3) No person, other than a competent person, shall supervise any

material alteration carried out on an authorised facility.

(4) In supervising the material alterations, the competent

person shall follow any guidelines that the Regulator may from

time to time issue.

(5) Once the material alterations have been carried out, the

competent person commissioned by the authorised person to supervise

the material alterations and the competent LPG installer commissioned

by the authorised person to perform such alterations must submit in

writing a certification that all safety requirements imposed on the

authorised facility have been complied with.

(6) The Regulator may, subsequent to the material alterations

referred to in sub-regulation (5) send an inspector to perform an

assessment inspection of the authorised facility.

(7) No person other than a competent LPG installer, shall

construct or carry out any material alteration on an authorised

facility or a facility required to be so authorised

Provided that such competent LPG installer shall be

supervised by a competent person in the construction of and the

carrying out of any material alteration on an authorised facility or a

facility required to be so authorised.

The Regulator may, at any time in the course of the period

for which the authorisation is valid, order its suspension,

revocation or cancellation where the Regulator is satisfied that

(a) the authorised provider has failed or is failing to abide

by any conditions of the authorisation or to abide by

these regulations; or

(b) the authorised provider does not possess all other

relevant permits and authorisations that are issued by

any other public authority; or

(c) the authorised provider is

contravening

any

requirement imposed by law; or

(d) the authorised provider fails to comply with any

directive given by the Regulator as to such matters as

are specified in the authorisation or are of a

description so specified; or

(e) any information submitted in the application for an

authorisation or the application for renewal of an

authorisation and for which the authorisation has been

issued or renewed, as the case may be, is determined to

be false; or

(f)

the authorised provider does not meet the criteria in

respect of one or more of the criteria referred to in

regulation 10

Provided that in exercising its powers of suspension,

revocation or cancellation of authorisations, the Regulator may

take into account the nature of the failure, or the fact that the

authorised provider is taking the appropriate steps which the

Regulator considers are necessary in order to comply with the

conditions of the authorisation or any other requirement that the

Regulator may deem relevant.

(1) Subject to the following provisions in this regulation,

the Regulator may at any time in the course of the period for which

the authorisation is valid, modify, amend, replace, add or delete the

conditions of the authorisation as it considers requisite or suitable

Provided that any condition which is so modified, amended,

replaced or added, shall be fair, objective, transparent and non-

discriminatory

Provided further that any deletion of a condition, shall be

made in a fair, objective, transparent and non-discriminatory

manner.

(2) Before making any amendments, replacements, additions or

deletions to the authorisation, the Regulator shall

(a) in accordance with the provisions of sub-regulation (3)

communicate such amendments, replacements,

additions or deletions to the authorisation it proposes

to make;

(b) state the reasons why such amendments, replacements,

additions or deletions are being proposed;

(c) specify the period (not being less than one month from

the date of publication of the notice) within which

representations or objections have to be made in

respect of the proposals being made

Provided that the Regulator in doing so shall consider any

representations made.

(3)

The notice referred to in sub-regulation (2) shall be

(a) brought to the attention of the Minister and the holders

of authorisations;

(b) brought to the public’s attention by the publication of a

notice in the Gazette.

(1) When an authorised provider or an authorised person

decides either to suspend or to terminate his authorisation to carry

out the activity of a bulk LPG distributor or to operate a fixed piped

network or to operate a secondary storage facility of LPG or to

carry out the retail activity of portable cylinders filled with LPG,

including retail from a fixed point of sale or to operate an autogas

retail station, the authorised provider or the authorised person, as

the case may be, shall promptly notify the Regulator in the form

prescribed by the Regulator to notify such a termination or

suspension.

(2) Upon acknowledgement by the Regulator to the authorised

provider or authorised person of the notification mentioned in sub-

regulation (1), the authorisation shall be considered to have ceased

and with immediate effect from the date of such acknowledgement,

the activity of a bulk LPG distributor, the operation of a fixed piped

network, the carrying out of the retail activity of portable cylinders

filled with LPG, including retail from a fixed point of sale or the

operation of an autogas retail station business and the operation of

a secondary storage f acility of LPG, shall be deemed to be

unauthorised.

(3) Notwithstanding any notification for termination or

suspension of an authorisation, the authorised provider shall remain

liable for the payment of any authorisation fees due prior to such

notification.

(1) An authorisation issued by the Regulator under these

regulations shall not be validly transferred inter vivos to any other

natural or legal person unless

(a) the transferor informs in writing the Regulator in such

form and manner as the Regulator shall prescribe;

(b) the Regulator is satisfied that at least the same criteria

as listed in regulation 10 are complied with;

(c) the transfer is subject to the conditions prescribed in

the authorisation; and

(d) the Regulator approves in writing the transfer of the

authorisation

Provided that the leasing of the authorised facility shall

require the issue of a new authorisation in the name of the person

leasing the authorised facility.

(2) An authorisation issued by the Regulator under these

regulations shall not be validly transmitted causa mortis to any

other natural or legal person unless

(a) the transferee informs in writing the Regulator in such

form and manner as the Regulator shall prescribe;

(b) the Regulator is satisfied that at least the same criteria

as listed in regulation 10 are abided by;

(c) the transfer is subject to the conditions prescribed in

the authorisation; and

(d) the Regulator approves in writing the transfer of the

authorisation

Provided that the authorisations issued in terms of these

regulations shall be an indivisible right

Provided further that in the event that the Regulator

approves the transfer of the authorisation as aforesaid, the transfer

shall have retrospective effect from the date of the death of the

decujus.

The storage of LPG in underground basements or garages

is prohibited.

All authorisations issued in terms of these regulations are

to be accompanied by an insurance policy taken by the authorised

provider to the satisfaction of the Regulator. The insurance policy

shall include cover for third party liability.

The authorised provider shall co-operate in any scheme

promoted by a competent authority, designed to ensure that the

maximum fire-fighting efficiency for the sector, at a national co-

operative level is achieved.

(1) The Regulator shall keep a register or registers of

authorisations which shall include records of

(a) all authorisations granted under these regulations, and

(b) all applications for an authorisation received and

refused.

(2) The register or registers of authorisations shall be kept

under review and up to date.

The Regulator may require any authorised provider to

supply the necessary data for the Regulator to fulfill its function to

regulate, monitor and keep under review all practices, operations

and activities relating to the LPG market.

The Administrative Review Tribunal established by article 5

of the Administrative Justice Act shall have jurisdiction to hear and

determine appeals from decisions of the Regulator made under these

regulations.

The dyeing of LPG used for autogas purposes shall be

carried out when such LPG is loaded on road tankers in accordance

with such method as approved by the Regulator.

(1) Any person who -

(a) willfully or through negligence acts in breach of any

provision of these regulations;

(b) willfully or through negligence breaches any condition

listed in the authorisations regulated by these

regulations;

(c) is a party to a boycott;

(d) carries out any activity requiring an authorisation

without being in possession of a valid authorisation;

(e) fails to comply with any lawful order by an inspector,

employee or officer of the Regulator in execution of

their duties in terms of these regulations;

(f)

hinders, obstructs, molests or interferes or attempts to

hinder, obstruct, molest or interfere with any inspector,

any employee or officer of the Regulator in the

execution of his duties in terms of these regulations;

(g) makes a declaration for any of the purposes of these

regulations which is false, misleading or incorrect in

any material aspect,

shall be guilty of an offence against these regulations and shall, on

conviction, be liable to imprisonment for not more than eighteen

months, or to a fine (multa) of not more than seventy thousand euro

(€70,000) or to one thousand five hundred euro (€1,500) for each

day during which the offence persists, or to both such fine and

imprisonment.

(2) The liability of an offender under sub-regulation (1) shall

be without prejudice to the liability of the offender to pay to the

Regulator any cost incurred in removing the cause of the offence

and to undo anything which was done without an authorisation

under these regulations.

(3) The Court, besides awarding the punishment referred to in

this regulation, may order the convicted offenders to close their

activity and, or to undo anything which was done without an

authorisation.

(4) In the prosecution of offences against these regulations

officials of the Regulator shall have the right to assist the police,

and to plead the case before the Court.

(5) Officers from the Regulator may assist the Police in the

exercise of any of their powers to prevent the commission of an

offence against these regulations and, or to secure evidence

concerning any such offence.

(6) The provisions of these regulations shall not affect any

criminal proceedings and, or any other proceedings that may be

instituted under any other law.

The Regulator may impose an administrative fine upon any

person who infringes any provision of these regulations or who

fails to comply with any directive or decision given by the

Regulator in ensuring compliance with these regulations.

Notwithstanding any other law, proceedings for an offence

against these regulations may be commenced at any time within six

years from the commission of the offence.

LIQUEFIED PETROLEUM GAS MARKET