MEA proposes 4-year energy pact
There is an urgent need for a stable and transparent solution to the determination of tariff rates, Malta Employers’ Association president Pierre Fava told the association’s annual general meeting.
He said that employers in Malta were faced with the highest utility rates in the EU and with the unpleasant prospects of industrial unrest resulting from an unclear policy of how the rates were determined.
“This is certainly an issue where social dialogue should be instrumental in establishing a mechanism which will be acceptable to all social partners.
“For this reason MEA has been constructive and forwarded a proposal to government for the formulation of an Energy Pact, which would involve a tripartite team of experts to establish a model for the workings of tariff rates that respects the constraints of public finances, social solidarity, competitiveness and market realities,” he said.
Mr Fava said that a four-year energy pact would enable businesses and consumers to plan and reduce the current tensions.
However, urgent action was required for an energy plan which would also incorporate the efficient use, storage and recycling of water, to prevent chronic shortages in the near future.
“We believe that there is a much better chance of a solution if the social partners put their heads together in this way, rather than taking to the streets.
“The fact remains that a global recovery will most probably result in higher oil prices, and that Malta currently has a dependence on fossil fuel consumption, given that even the generation of our water supply depends on energy consumption,” he said.
Mr Fava said that Malta was in dire need of political consensus on major national issues.
“Our political parties must place the objective of having a competitive and sustainable economy ahead of pandering to marginal votes by making unrealistic promises. It is important for Malta to remove critical issues from the partisan agenda.
“Free medical health care, pensions, welfare benefits, student stipends – these can only exist if Malta manages to remain competitive and achieve higher rates of economic growth.
“An unbalanced social dialogue, which undermines the relevance of the business community will lead to sluggish economic performance which makes the citizens’ aspirations unsustainable.
“We should all learn from the current state of affairs in Greece to avoid experiencing a similar situation in Malta in the years to come.
“Although Malta is an island, it is not isolated. Indeed, because of its open economy, it is more connected to global events than many other economies,” Mr Fava said.
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jsaliba
Feb 19th 2010, 16:59
It would be worth to try and find a stable solution re energy rates. But I don't share the same opinion that the policy of how rates were determined is unclear. I believe the minister was clear enough. Maybe Mr Fava was blinded by some smoke screen journalism or he meant that the policy might be changed. As regards Mr Joe Grech I have a solution for owners of summer residences re water and electricity bills. Do not vote PN next election vote for a party who might take your summer residence and give it to his needy partisans. Killing two birds with one stone. He will reduce his energy bill having only one to pay and at the same time a relatively poor partisan or one on the verge of poverty will be saved.
M Tabone
Feb 19th 2010, 16:12
Smart and intelligent remarks. Even a 3-year Energy Pact can work well since much was achieved with respect to consumption efficiency. There should be an input-output approach to find a real solution. Utilities are vital and determine various aspects apart from direct implication on competitiveness. The spin-offs can be a greater significance. Gradual fair and just pricing is a necessary evil for the prevailing global economic situation. The ultimate solution is to speed up the process related to feed-in tariffs. This will present new business opportunities for energy consumers (being it industry or domestic) on its own rights and reverse a minus into a plus, if well implemented.
Joe Grech
Feb 19th 2010, 16:11
I agree with the general views and arguments expressed by Malta Employers’ Association president Pierre Fava.
He declares: ''There is an urgent need for a stable and transparent solution to the determination of tariff rates...'' How very true. Government needs to accept that much!
Hopefully the authorities will address the problem NOW before things escalate further, much to everyone's discomfort - and the nation's economic malaise.
Mr. Fava is of course entitled to his believing that “there is a much better chance of a solution if the social partners put their heads together in this way, rather than taking to the streets.''
But, let's face it: Unions - and representatives of specific sections of the population (for example those highlighting the impending plight of owners of summer residences) have been trying for so long to reach a better, more just, more ethically and economically sound, agreement with the administration about the Utility Bills problem, but they have, to date at least, come up against irrationality, a blank wall.
If there is no change in the government's attitude then I personally believe it is time for people to express their concern in the open.
May a solution be found in time!
J.Borg
Feb 19th 2010, 15:58
Good proposition coming from MEA and hope that government takes heed and works on the issue.
While speaking on energy, the governemnt issuiing subsidies for solar water panels and solar panels for electricity generation.
As we know many households in Malta don't have that space to accomodate both the water panels and those for electricity generation. Also, many households still produce hot water by means of the water heater, better known as "geyser"
So why doesn't the governemnt does away with subsidies for solar water heater and put more money on those for electricity generation.
With this method, although these panels cost more, if the panels are enough to generate electricity for 2 or more housholds, the expense can be split by these housholds together.
Maybe some experts can look into this and maybe come up with a good proposal.