MHRA asks the government to keep MCESD updated on Energy strategy

The Malta Hotels & Restaurants Association (MHRA) has noted that the price for crude oil has over an extraordinary short span of time gone down to levels below those last seen in late 2008 during the financial crisis.

It said that since the forward buying and in-store products levels procured or committed to by Enemalta (or what is now an independent Government owned Petroleum company,) were not known, MHRA expected the Malta Resources Authority (MRA) to inform stakeholders whether the latest developments on the international fuel prices were being reflected fairly in the local market.

MHRA said that the MRA is there to pronounce itself publicly on these matters and to ensure fair competition amongst suppliers and that the interests of both the domestic and industrial consumers are safeguarded.

MHRA called a meeting with MRA to discuss these issues. Furthermore, MHRA has also called on the Government to specifically update the Malta Council for Economic and Social Development (MCESD) on the Energy strategy being rolled out.

“The Government needs to ensure that the maximum benefit in energy savings due to the lowering of international prices will be passed on to the consumers whether individual or commercial,” MHRA said.

“The lowering of the fuel and utility costs to the individual user will give a big boost especially to the lower income earner. This will reflect itself in increased economic activity. The lowering of the costs to the commercial sector will render it more competitive internationally and stimulate growth of the economy,” said Tony Zahra, acting president of MHRA.

The MHRA said that Malta’s competitiveness depends on a number of factors.

“One of the most important factors is the price of Energy. Indeed one can go as far to conclude that the competitiveness of the energy sector can to a good extent determine the success or failure of the economy of a country. Malta is not exceptional in this matter and the price of energy is a considerable factor in the economy cost structures,” said the MHRA.

MHRA added that it has consistently spearheaded the call for changes that are essential for restructuring the Electrical Energy sector. They are pleased that this has led to a reduction of 25% of the individual costs of electricity last year, which in March this year will be extended to commercial operations.

MHRA noted the progress made in Enemalta, particularly in reference to the ownership restructuring and capital injection.

“This has been a very important step but it must not stop there, as the problems that MHRA had identified; namely the low efficiency in generation, the poor grid infrastructure and the losses from distribution which had been estimated at 25% of total output still have to be resolved,” it said.