Organisations representing businesses in Malta have demanded further reductions in their energy bills.

While the Chamber of Small and Medium Enterprises, GRTU, said it expected electricity prices for SMEs to drop by 30 per cent, the Chamber of Commerce is expecting a reduction for all businesses across the board.

In their proposals for the upcoming Budget, the organisations said they believed that measures had to be taken to address problems that have been stifling the businesses competitiveness.

Their requests follow the 25 per cent reduction from which businesses have already started benefiting since April 1. According to the government, this reduction will see businesses save some €50 million a year. GRTU president Paul Abela told The Sunday Times of Malta yesterday that the cost Ïf electricity impinged heavily on enterprise competitiveness.

“For several years, Maltese businesses had to shoulder the cost of hefty electricity prices because of the international price of oil. But now that the price is down to $40 a barrel, combined with substantial savings from the efficient BWSC operation as well as energy available at significantly cheaper rates through the interconnector, we expect a significant reduction in the price our SMEs pay for electricity,” he said.

Now that the price is down to $40 a barrel... we expect a significant reduction in the price of electricity

Mr Abela said that although the chamber was recommending a 30 per reduction, it was the “bare minimum”, and urged the government to ask “its well-paid experts” to cost it.

When contacted, Chamber of Commerce director general Kevin Borg said although its Budget proposals were still being finalised, energy issues are expected to “feature heavily” because these had taken precedence over other issues such as the Cost of Living Adjustment.

“We will be calling for further reductions. We do not want to nail the government down to a percentage but we want a reduction not only for small enterprises but for businesses across the board,” Mr Borg said.

In its proposals expected to be made public later this week, the Chamber suggests changes to the parameters for night tariffs in a way that the ceiling is lowered for more business to benefit from lower rates at night. It is also suggesting that night tariffs begin earlier.

Moreover, the Chamber talks about the possibility of having factories in close proximity to each other – such as in industrial estates – purchasing energy in bulk at cheaper rates.

Businesses should also be given the opportunity to purchase power directly from Europe through the interconnector, keeping Enemalta involved in the transaction.