Updated: No final decision on new power tariffs, government insists

(Adds government reaction)

The government insisted this afternoon that it had not taken any decision on the new power and water tariffs, and what had been issued so far were only proposals for consultation.

The government was reacting to an angry chorus of complaints by the private sector and the trade unions over the proposals, issued on Wednesday.

The non-government members of the Malta Council for Economic and Social Development (MCESD) in a letter to the Prime Minister had earlier described the proposed new tariffs as an unacceptable fait accompli.

The government said final decisions would only be taken after the views of all interested parties were heard. However the international economic scenario demanded that energy production had to be on a solid financial basis.

That the proposed new tariffs would be retroactive to October 1 did not prejudice the consultation process, the government said.

It also revealed that the Opposition had accepted an invitation for a presentation on the subject on Monday.

The MCESD in its statement said that there was no agreement on the proposals made to it on Wednesdaty.

"It is particularly unacceptable that these proposals are considered as having come into force on October 1, as indicated to the media," the social partners said.

They said the proposed measures appeared to lack all sensitivity to their social and economic impact. Even from this aspect alone, such measures were unacceptable.

The exercise had not taken into consideration the international situation and its inherent uncertainty, the MCESD said.

"The Council had formed the impression that these are not proposals, but decisions, which clearly shows that this was not a consultation exercise but, yet again, a fait accompli. This is an unacceptable situation when the council has a consultative role and groups all the representatives of the socio-economic sectors in Malta," the MCESD said.

"Since there is a total absence of an economic and social impact assessment, this will have to be made by the council itself, the Council cannot accept that the measures are introduced on October 1, a date which appears to have been decided arbitrarily," the Council said.

Earlier today the Federation of Industry said the proposed new tariffs would threaten thousands of jobs.

The GWU said the tariffs were a double blow for workers, undermining their purchasing power and threatening their jobs.

The MLP condemned the government for its lack of consultation. It said it still has to present its official position, but the new tariffs would instil uncertainty.

The UHM at a press conference said its calculations showed the impact of the new tariffs would be much higher on families than the government was saying.

The Malta Hotels and Restaurants Association said the new tariffs would cause a huge increase in costs.

The Malta Employers Association also expressed its serious concern and demanded proper consultation on measures to ease the impact of the tariffs.

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