Updated: GWU seeks MCESD meeting on power surcharge

The GWU said today it had written to the chairman of the Malta Council for Economic and Social Development seeking an urgent meeting on the impact of the power surcharge. It also deplored the fact that the social partners were not consulted before the surcharge.

The union described the surcharge increase and said it was drastic and would have a negative impact on people's purchasing power. The government, it said, could not continue to impose burdens on the people in this way.

Earlier, the Federation of Industry and the Union Haddiema Maghqudin also deplored the fact that the social partners were not consulted before the increase in the power surcharge was announced

The FOI said the revised surcharge will affect industry both directly, and indirectly, the latter including increase in transport and material costs, supporting services and potential labour demands.

“This is expected to have a significant impact on all sectors across industry, with thousands of Small and Medium sized enterprises suffering the harshest blow.”

“This increased burden will be difficult to absorb entirely by the companies themselves, and can only lead to price increases or scale-down of operations,” the FOI quoted some of its members as saying. Other members remarked that due to long-term contractual arrangements, the increase in surcharge will negatively impact their finances as they could not pass on the increased costs to their clients.

It, however, welcomed the fact that the capping system on the surcharge for large firms has been retained, saying that otherwise this would have caused intense ramifications across industry.

The federation said the need for energy efficiency support measures was evident now more than ever. It urged the government to make good its promise of Structural Funds, in order for industry to be able to invest in energy efficient processes, alternative sources of energy, as well as educate employees about the conservation of energy.

The UHM said it was concerned that the surcharge increase, coupled with the recent increases in fuel and food prices, would cause hardship for many families.

While it acknowledged that the international oil price had doubled in a year, the UHM said efforts should be made to minimise its impact on the people.

The union said it expected effective consultation on the issue with all the social partners.