Greater reliability in energy supply should not attract higher rates

Recent power cuts and reactions by industry have brought in their wake comments from the Enemalta Corporation chairman that merit a reply from the FOI as the organisation representing industry.

The media reported Professor Robert Ghirlando as saying that "one can increase reliability of the supply by installing more equipment, but everything comes at a price".

Now, this seems to imply that the present service can be supplied at the present high rates that industry is charged for its power consumption, but that a more reliable service requires an even higher price. This is unacceptable to the federation.

Industry has insisted on a good quality, reliable service without any increases in costs. Industry and the public at large have a right to a good service and it is the duty of the Malta Resources Authority to ensure that Enemalta gives a good service at a reasonable price that allows industry to compete.

The authority should moreover hold Enemalta responsible for compensation of losses incurred by industry through power failures. This country is burdened by two power stations that are roughly sharing the power load between them.

They are evidently being manned at above average cost by the only energy provider - Enemalta - simply because the country cannot afford to be left without power. With all the double cost involved in maintaining two power stations, industry is still not being provided with an uninterrupted service.

The situation was described by the FOI as requiring urgent attention by increased all round efficiency in the corporation, in the same manner that industry has to achieve to retain its clients to whom it exports its goods and services.

Industry manages to survive by improving the quality of its goods and services. In several instances it also has to lower its prices for its clients and to compensate for this it has to increase its efficiency and lower its costs.

Enemalta was urged to follow suit. As a state monopoly Enemalta was urged by the FOI to face reality and not to drag the country's industry and its economy down!