Editorial

Energy rates: Time to settle the issue

In a situation where a glut of bad news is causing so much concern practically everywhere, it is somewhat heartening that Malta has at least started off the year with a move that has received so much national approval - the nomination of George Abela as President of the Republic. Except for a few who have their own reason for disagreeing with the choice of the nominee, or with the way he was nominated, there is general consensus that Dr Abela is the right choice for the post.

News of the nomination has overshadowed the long-running squabble over the rise in the water and electricity rates. The government's energy corporation has gone ahead with the mailing of bills based on the revised charges, and a number of trade unions and the Chamber of Small and Medium Enterprises - GRTU are still at loggerheads with the Administration over the issue. Eleven unions, including the General Workers' Union and the Malta Union of Teachers, the strongest two in terms of membership within the group, are seeking a clarification of the government's estimate that 73 per cent of families stand to benefit from eco-reductions allowable in the computation of the bills. They have meanwhile called on consumers not to pay their bills before the time allowed for payment.

The GRTU is said to be working out a set of "fair rates" to use in court when it challenges the energy tariffs, and plans to give directives to members in protest against the government's action. All this means that the issue is now back in the forefront of the national agenda, even though the government has tried to deflect it by referring the 11 unions to the Malta Resources Authority. But the unions have not played ball and are insisting that the matter be thrashed out directly with the Prime Minister.

Taking their case first, many, possibly the majority, have not gone into the nitty-gritty of the way the bills are computed. If the unions really want to settle the matter, why should they refuse to first take the issue to the authority?

If the reply they get is unsatisfactory, they could then make this publicly known and call for urgent talks with the Prime Minister. Had they done this at the time they were advised to do so, they would have saved a great deal of time. And if the GRTU plans to take the issue to court, it should then mark time over its intention to issue directives to members.

Naturally, all this bickering could have easily been avoided had the government acted wisely in the first place. The government is right in deciding to do away with subsidies, but the revision of the energy rates ought to have been carried out over time, as many, including this newspaper, had proposed. At times, the government was even seen to be acting arrogantly with members of the Malta Council for Economic and Social Development.

There is a great deal the island would have to grapple with over the next weeks and months and losing further time over this issue would not do any good to the country. The irony of it all is that the price of crude oil has now plummeted to $38 a barrel. True, as the government so often says, the country buys the fuel needed for the generation of electricity in its refined state but, hopefully, its price will soon start to reflect the sharp drop in that of crude.

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