Delays in the launch of a second interconnector and a deteriorating power distribution system are turning Malta into a third-world country, the Malta Employers Association warned on Friday.
This consequently corroded competitiveness and impacted the reputation of the island as a destination for foreign direct investment, it added.
In a statement, the association called for political consensus to address the power cuts situation through a long-term holistic energy plan to guarantee an energy infrastructure that matched Malta’s current and future requirements.
On Friday, Times of Malta reported that manufacturing companies at the Bulebel industrial estate in Żejtun were left without power for much of Thursday, with one business owner estimating the outage had cost their company around €5,000.
The outage is the latest in a series of such failures, with power cuts sweeping localities across the country, renewing fears of a repeat of last summer, when amid a searing heatwave, residents across the country were left without light, air conditioning and adequate food storage capabilities for days.
In a report last month, the National Audit Office (NAO) said the power cuts last year took place against a backdrop of Enemalta's under-investment in the electricity grid.
The MEA said the current sporadic electricity outages affecting households and businesses were "unacceptable".
"As innocent parties, they are bearing the full cost of the failures of others... Business and industry are having to pay the cost of a decade of neglect in investment in infrastructure, together with a lack of planning to match energy demand increases with a rapid rise in population.
"Promising compensation for power cuts does not make up for serious shortcomings, and while one can justify a one-off payment to compensate for what was envisaged to be a temporary crisis during 2023, the situation cannot continue to be remedied by repeated compensation payments.
"Businesses are legitimately entitled to expect a stable energy supply as a very basic pre-requisite for investment in Malta."
The MEA thanked Enemalta’s employees for working round to clock to alleviate pressure and ensure the least disruption possible.
However, the use of generators and auxiliary power sources emitted "clear signals to the country and the rest of the world", that the local infrastructure was insufficient, overstretched and unprepared, MEA said.
"The country’s panic measures are evidence that our authorities are firefighting without a long-term strategy to secure the security of power supply.
"The inexplicable delays in the implementation of the second interconnector, combined with a deterioration of the distribution systems are turning Malta into a third-world country, with a consequent corrosion in competitiveness and reputation as a destination for FDI."