The Malta Chamber of Commerce, Enterprise and Industry has said a number of its members have already expressed their serious concern over the revised tariff rates.

The Chamber said serious concern also arises from the fact that the new rates were arrived at on the basis of an updated consumer profile and the Enemalta's cost base for 2010.

It said that utility bills pose a significant threat to national competitiveness. "This is especially important for Malta given that local operators are disadvantaged by twin market failures. This arises from the fact that the country relies almost exclusively on fossil fuels and the distribution of utilities is governed by an inefficient monopoly. Users of water and electricity therefore remain at the mercy of the provider and are price takers as much as the country is at the international level.

"There are very few options available to business except to purchase water and electricity from the designated supplier and no indication has been given as to when the interconnectivity cable with Sicily will be in operation, and indeed if similar operations are to be open to liberalisation."

The Chamber stressed that the increases came on top of one of the largest cost of living increases ever given. It said it believes in the need for a more forthcoming regulatory authority.

"The Malta Chamber questions the whole process of how the rates were finally issued. The government announced its intention to increase the tariffs two months ago, and now, on the eve of Christmas they are finally published. Worse still, published without the necessary impact assessment.

"Furthermore, the Malta Chamber stresses that arrangements reached with the government in 2008 on a gradual introduction of the new rates for industry must continue to be respected," it said.