Real impact still unknown

The director general of the Malta Chamber of Small and Medium Enterprises (GRTU), Vince Farrugia, said a surcharge of 55 per cent was steep but was still better than 100 per cent.

He expressed satisfaction that the government had taken the GRTU's advice to apply the EU directive which gives it the right to offer reduced rates to a number of sectors.

Another positive aspect was the government's decision not to use a cross-subsidisation tariff policy on electricity and fuels.

Mr Farrugia said the hike in the cost of electricity would affect many establishments, adding that the impact still had to be gauged. Moreover, increases in wages would mean a double blow for many businesses at a time when the economy was showing green shoots in several sectors.

Mr Farrugia said the GRTU hoped that credit incentives would be given to people who switched from high consumption electricity to other alternatives.

He pointed out the importance to upgrade power stations, saying that 61 per cent and 75 per cent of the fuel used at the Delimara and Marsa power stations respectively was lost.