Businesses are already burdened with the water and electricity bills and if these increase again there would be a very strong negative impact on competitiveness, Labour’s economy spokesman Gavin Gulia has said.

Referring to the Prime Minister’s remarks last Sunday when he strongly suggested tariffs might rise again, Dr Gulia said SMEs and the self-employed would be the ones to suffer the greatest blow.

Dr Gulia added that even if tariffs did not rise, the Prime Minister’s statements were sowing uncertainty and the effects were already being felt.

Domestic consumption was already weak and should the burdens increase, families would have even less money in their pockets.

He said the government should declare the maximum tariff it was willing to accept while the regulator should be proactive and remember it was there to safeguard consumers, families and businesses.