Enemalta's distribution losses for 2007 stood at 13 per cent of total electricity generated, among the highest in Europe, according to figures provided by the Resources Ministry.

The losses, costing millions of euros, are down from 15.8 per cent in 2005. But the figure is still double the European average of units of electricity sent out to the grid but which remain unbilled.

Last year, Enemalta's technical losses - inefficiencies in the transmission and distribution of electricity - totalled six per cent.

The corporation suffered a further loss of seven per cent, due to non-technical losses such as theft and billing system inaccuracies.

The government has decided to increase Enemalta's water and electricity tariffs in a bid to eliminate millions in subsidies to the corporation.

In Europe and the US, average network losses are around seven per cent, according to figures released by the European Copper Institute and Ofgem, which regulates the electricity and gas markets in the UK.

According to a report published by the European institute this year, Malta's electricity distribution loss is among the highest in Europe. The only countries to suffer similar percentages of distribution loss are those from the ex-Soviet bloc, including Estonia, which is listed at 16 per cent, and Lithuania and Latvia, suffering losses of around 14 per cent.

Worldwide, the countries suffering the worst distribution losses are considered to be Mexico, Brazil, and India, that lose out via illegal network connections; around 14 per cent, 18 per cent and 27 per cent respectively.