Malta avoids endorsing EU calls for cuts to energy use amid Iran war

Malta has stopped short of backing EU-wide calls for emergency cuts to energy use, instead pointing to its “preparedness plan” as fears grow over supply disruption caused by the Iran war.

In recent weeks, several top international bodies and figures have called for countries to take clear steps to cut down on their energy consumption, as uncertainty over oil and gas supplies continues to prevail.

As the war progressed, fears grew that Iran’s chokehold on the Strait of Hormuz, through which a fifth of the world’s oil and natural gas supply passes, would lead to widespread energy shortages across Europe.

Meanwhile, several of the world’s largest energy companies have scrapped their hedging agreements, citing force majeure following attacks on key energy infrastructure. Force majeure is a legal term for an extraordinary event outside a company’s control that prevents them from meeting their obligations.

In late March, a report by the International Energy Agency (IEA) recommended a ten-point list of “immediate actions” each country should adopt to cut down on energy demand.

These included encouraging working from home, alternating private car access to certain roads, reducing driving speed, cutting down on air travel and encouraging electric cooking, rather than gas.

Shortly after the report was published, the EU’s Energy Commissioner Dan Jørgensen echoed these calls, urging countries to adopt the IEA’s recommendations.

“Even if ... peace is here tomorrow, still we will not go back to normal in the foreseeable future,” Jørgensen warned.

'Malta’s position as an island is a mitigating factor'

When asked whether the government endorsed these calls, a spokesperson for the Energy Ministry made no reference to the measures pushed by the IEA and echoed by the EU’s energy commissioner.

However, the spokesperson said, the government was “closely monitoring ongoing developments in energy supplies, with each entity having its emergency preparedness plan in place”.

While authorities have already pledged to freeze energy prices through subsidies, the spokesperson said Malta “remains exposed to external events; that is why responsible use of resources has been emphasised repeatedly,” a message that has been “reiterated” during recent public events.

Malta’s unique position as an island is a mitigating factor, the spokesperson said, as has been the case during previous instances of choppy international waters.

For instance, at the time of the COVID-19 pandemic, Malta had obtained a derogation from an EU-wide mandate for member states to slash their consumption by 15%, the spokesperson explained.

Nevertheless, the spokesperson said, “the government is constantly strengthening its resilience to potential external shocks by investing in energy diversification, developing infrastructure, and improving efficiency through incentives”. 

People are also being encouraged to consume less through incentives, including grants to invest in renewable energy sources and other initiatives targeted at businesses, the spokesperson said.