The Malta Resources Authority is being urged to announce details of the water and electricity tariffs immediately, amid fears among employers and unions that uncertainty will have a negative effect on trade during the festive season.
The government said last Friday that Enemalta and the Water Services Corporation had filed a request with the MRA for an increase in tariffs, which would come into force next year. However, the scale of the revision was not announced "on the direction of the MRA".
Malta Employers Association president Pierre Fava said: "This uncertainty will spoil our Christmas." Indications are that the increases will be hefty. On top of the €74.9 million needed to make up for oil prices in 2010, the new bills have to recover a shortfall of €21.5 million for this year because the tariffs did not cover increasing oil prices, and €10.7 million for projected investments.
From past experience, it has taken the authority weeks, sometimes months, to approve the tariff revisions, which means the process could drag on well into the Christmas season.
When contacted yesterday, MRA CEO Anthony Rizzo said the authority was still reviewing the request and was not in a position to say how long this would take.
A spokesman for the MRA said that announcing or publishing the tariffs at an early stage would undermine the authority's role and the assessment process.
"The time required for the verification and assessment process depends on a number of factors, the most important being the provision of data and information to enable the authority to verify and assess the proposed tariffs. The authority would like to assure the public it will be doing its utmost to complete the exercise as soon as possible," he said.
However, Chamber of Commerce president Tancred Tabone said the tariff hike could not have come at a worse time. "Many were hoping Christmas would push profits up and make up for the past months. Now this risks jeopardising it," he said, adding the least the MRA could do was give a quick decision.
Malta Employers' Association director general Joe Farrugia said consumers and business needed to know where they stood as soon as possible, describing it as a déjà vu of last year's controversy when the tariff debate took place around Christmas time.
He stressed the need for stability, pointing out that the silver lining in this revision was that the government would likely be planning for a year, ditching the six monthly revision system. "Businesses need to be able to plan," he said.
Chamber for Small and Medium Enterprise - GRTU - director general Vince Farrugia was more optimistic, saying the uncertainty would not necessarily have a negative impact on consumers.
"In January (when the revised bills are set to come in) it's a different story, but consumers usually don't do their shopping according to what they expect to face next month. Usually, if they have the money they spend it. If they don't, they will not," he said. However, he stressed the MRA should publish a detailed analysis of its review once it decides on the new bills. "This idea that the government proposes bills and the MRA just accepts them has to stop. We need to be given a detailed explanation why the authority concluded what it did."
The two main unions were also critical of the situation.
Union Ħaddiema Magħqudin general secretary Gejtu Vella said: "I expect the Finance Minister to give us an indication on Monday (on budget day).
"On top of the international crisis which has been hitting us badly in recent months, we cannot have this hype and uncertainty... we need stability."
General Workers' Union general secretary Tony Zarb went a step further, saying that raising bills now was ill timed.
"Employers have been telling us that they cannot meet the bills as they are now. What will happen if they are raised?"