Authorisation to Operate a Fixed Piped Network of LPG

Authorisation to Operate a Fixed Piped Network of LPG

The Regulator for Energy and Water Services issues authorisations to persons to operate a fixed piped network in accordance with the Liquified Petroleum Gas Market Regulations – S.L. 545.20

A “fixed piped network” is defined as 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.

Any person (including any legal person) that intends to:

• operate a Fixed piped network of LPG;
• renew an existing authorisation to operate a Fixed piped network of LPG;
• Transfer an existing authorisation to operate a Fixed piped network of LPG to a third party;

is required to apply in writing to the Regulator for Energy and Water Services and be in possession of an authorisation issued by the Regulator under these regulations prior to providing and offering such a service, and operating such a system, and carrying out the service activity and the exercise thereof.

Prospective applicants are invited to refer to the specimen authorisation for the operation of a fixed piped network of LPG to have a clear idea of the authorisations issued by the REWS.

Application for an Authorisation to Operate, Renew or Transfer:

Fixed piped network of LPG e-Form

Fixed piped network of LPG Form (English Version) REWS/052/v11-03-06/23

Liquified Petroleum Gas Market Regulations – S.L. 545.20
Note:  Applicants are advised to engage a competent person in LPG technology to assist them in completing  the application form.

• Details / number of the Identity card or passport of the applicant;
• In the case of a legal entity, details / number/s of the identity card/s or passport of the legal representative/s;
• Handwritten signature of the applicant or in the case of legal entity, handwritten signature/s of the legal representative/s of such entity.

In addition, in the case of applications for the transfer of an Authorisation the abovementioned details have also to be submitted with respect to the current authorised provider.

• Copy of Identity card or passport of the applicant;
• In the case of a legal entity, copies of the identity card/s or passport of the legal representative/s;
• A recent (< 3 months old) police conduct certificate of the applicant. In the case of a company/ Legal Organisation, the police conduct certificates of all the Directors and Legal Representatives;

At the design stage of the proposed fixed piped network, the following documents are required to be submitted:

• A Technical Proposal compiled by the Competent Person indicating the proposed design details of the fixed piped network.

After a preliminary clearance is issued by the Regulator and upon completion of the new fixed piped network, the following documents are required to be submitted:

• An approved Planning Authority Permit for the fixed piped network.
• A Commissioning Report (REWS 161/V6-15-06-23) by a Competent Person of the fixed piped network;
• A copy of the Insurance Schedule and its respective Insurance Policy details indicating the liability coverage to third parties against bodily injury and property damage caused by the storage of LPG and the associated operations of the fixed piped network.

The applicable fees are as follows:

• A non-refundable application fee of:
  • € 50.00 (Fifty Euros) for a network with 2 metered outlets;
  • €100.00 (One Hundred Euros) for a network with 3 to 5 metered outlets;
  • €200.00 (Two Hundred Euros) for a network with 6 to 10 metered outlets;
  • €300.00 (Three Hundred Euros) for a network with 11 to 15 outlets;
  • €500.00 (Five Hundred Euros) for a network with 16 or more metered outlets.
• An annual authorisation fee of:
  • € 50.00 (Fifty Euros) for a network with 2 metered outlets;
  • €100.00 (One Hundred Euros) for a network with 3 to 5 metered outlets;
  • €200.00 (Two Hundred Euros) for a network with 6 to 10 metered outlets;
  • €300.00 (Three Hundred Euros) for a network with 11 to 15 outlets;
  • €500.00 (Five Hundred Euros) for a network with 16 or more metered outlets.

Regulation 28 of the Liquified Petroleum Gas Market Regulations  establishes that any person who carries out an offence against these regulations 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.

In addition, the Regulator for Energy and Water Services Act provides that any:

• any person who carries out any such activity without a licence or who acts in breach of any condition of such licence, shall be guilty of an offence and shall be liable on conviction to a fine (multa) not exceeding one hundred and fifteen thousand euro (€115,000) or to imprisonment for a term not exceeding two years, or to both such fine and imprisonment;
• the Regulator may impose an administrative penalty upon any person who infringes any provision of the Act, or  regulations prescribed thereunder or of any other law which the Regulator is entitled to enforce, or who fails to comply with any directive or decision given by the Regulator or who fails to comply with any condition  of any authorisation granted under the Act.  Such administrative penalty shall not exceed:
  • one hundred thousand euro (€100,000) for each contravention and, or six hundred euro (€600) for each day of non-compliance, from the date of the decision given by the Regulator; and, or
  • in the case of an undertaking (including a vertically integrated undertaking) or a body corporate, up to 10%   of the total turnover concerned in the preceding business year. Provided that in the case of an undertaking, including a  vertically  integrated  undertaking  or  a  body corporate, a fine of up to 10%  of the annual turnover  concerned  in  the  preceding  business  year, which  amount  exceeds  one  hundred  thousand  euro (€100,000) may, in any such case be imposed.

In the case of application for new fixed piped network, Regulation 7 of the Liquified Petroleum Gas Market Regulations establishes that the Regulator shall communicate to the applicant in writing within a reasonable time, which shall not be of more than three (3) months from the date of receipt of a valid application.
In the case of application of renewal, Regulation 7 establishes that an application for the renewal of an authorisation shall have to be submitted in writing to the Regulator in such form and manner as the Regulator may require, six (6) months prior to the date on which the authorisation expires.

The Liquified Petroleum Gas Market Regulations further establish 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 whatsoever, that the Regulator has tacitly granted such authorisation and that the applicant has automatically been granted access to a service activity or the exercise thereof.

Any decision taken by the Regulator, including refusal or withdrawal of an authorisation, may be subject to appeal before the Administrative Review Tribunal established by Article 5 of the Administrative Justice Act and the provision in Article 26 of the Liquified Petroleum Gas Market Regulations – S.L. 545.20.

You may submit the application form together with all associated documentation and relevant payments referred to in the application form either by post or by hand to:  
Regulator for Energy and Water Services,
Zentrum Business Centre, Level 1,
Mdina Road,
Qormi  – QRM 9010,
Malta.