Utility bill changes could cost STMicro €7.3m a year

The government decision to remove the surcharge capping on utility bills could mean an additional shortfall of about €7.3 million - or $10 million - annually for STMicroelectronics.

The company already has annual shortfall of $58 million.

ST Malta hit the headlines in early summer as fears grew that the company, Malta's largest exporter, could close its plant due to rising costs and a tough euro-dollar exchange challenge.

Industry sources said the increased shortfall was especially worrying when one considers the prevailing international economic situation.

The plans to remove the capping are part of a proposed reform package for Enemalta unveiled by the government at the Malta Council for Economic and Social Development last Wednesday.

The measures have attracted strong criticism from the constituted bodies, with both employers and unions saying the new tariffs would shock the economy.