Chamber wants electricity tariffs reduction before target date

The Malta Chamber of Commerce, Enterprise and Industry has once again called on the government to reconsider its position and implement the reduction in electricity tariffs for industry before the 2015 target.

The Labour Party’s electoral pledge for 25% reduction in the industry’s energy tariffs is planned for 2015, but according to the Chamber the set timeframe is not beneficial for businesses.

Expressing “concern” over the Energy Ministry’s statement that the reductions cannot be effected earlier, the Chamber said the government could not ignore the industry’s obstacles in competitiveness.

“The Chamber acknowledges the constraints that Government is facing to render Enemalta sustainable. But the government cannot ignore the constant erosion of our industry cost-competitiveness that has become a matter to be tackled with utmost urgency,” it said.

It is estimated the reduction in tariffs could save businesses €50 million. The reduction for households cost the country’s coffers over €25 million. According to the government, this was only possible because of the €30 million advance payment from Electrogas.

The Chamber however argues that rising energy costs are precluding businesses from competing on a European front. It also wants the government to further increase the reductions.

The Chamber said its policy document identified the major pressing concerns for the sector, such as the provision of stable energy at competitive rates, transport costs and investment support, amongst others.

“The Malta Chamber reiterates its position that a timely intervention in addressing the energy costs would serve as a clear sign to investors that Government means business in giving growth and jobs the needed priority as is the case in other countries and regions,” it said.

It went on to urge government to reconsider its position in line with a recommendation made by the Chamber in November last year to reduce tariffs, at least with respect to the high energy business consumers, with effect from March this year.

The Chamber’s position paper showed that the official rate for industrial users stood at €0.18c per unit, whilst the average rate for the 22 highest energy consuming companies surveyed by the Chamber was €0.16c per unit.

“The proposed reductions are not enough to, at least, equal the 9c per unit average rate in the European Union. Whilst the proposed tariffs are low when compared to Malta’s standards, they are still uncompetitive when compared to an average of 4c per unit available in the United States,” the Chamber had said.