A proposal for a further reduction in utility tariffs, particularly electricity, is expected to dominate a meeting between the social partners and the government today, theTimes of Malta is informed.

Although the government has already shot down a request by the Chamber of Small and Medium Enterprises (the GRTU) to slash electricity prices by at least 30 per cent, sources close to the Malta Council for Economic and Social Development said the business community would continue to insist on further cuts.

“The government is arguing that cuts will harm Enemalta’s recovery. Although repaying past loans is an important point that cannot be neglected, Enemalta is still making huge profits from oil and has just cut its workforce by 600 workers. We will insist that business and the community at large would benefit from these changes,” an employer said.

So far, the two major trade unions, the General Workers’ Union and the Union Ħaddiema Magħqudin, have not taken a stand on the proposal to reduce utility rates.

Price of crude oil on the international markets has been in free fall

On the other hand, the Chamber of Commerce, Enterprise and Industry and the Malta Employers’ Association have come out supporting such a move. Contacted yesterday, GWU general secretary Tony Zarb said the union would only make its position known after the MCESD meeting.

“We will first discuss the proposal and the Budget in general and then come out with our position on the electricity tariffs,” he said. The UĦM is still mulling over what stand to take.

“Although we are in favour that any savings being made by Enemalta should be passed on to the consumer, we are still discussing our official position,” general secretary Josef Vella said. “Obviously, although lower electricity charges are important, there are other issues that are as important for us, such as the future of the pension system,” he added.

Since the introduction of a 25 per cent decrease in the cost of electricity by Enemalta, the price of crude oil on the international markets has been in free fall.

From over $100 a barrel in March 2014, the price has constantly followed a downward trend and now stands at $48 a barrel, a drop of 55 per cent.

Enemalta is making other significant savings. Following the sale of a 33 per cent stake to Shanghai Electric, the energy provider has shed just under 600 jobs from its wage bill by moving them to other entities, saving more than €10 million annually.

The interconnector with Sicily makes it possible for Enemalta to import about 200 MW of electricity at cheaper rates.