Malta's competitiveness depends on a number of factors. One of the most important factors is the price of energy. Indeed one can go as far to conclude that the competitiveness of the energy sector can to a good extent determine the success or failure of the economy of a country.

Malta is not exceptional in this matter and the price of energy is a considerable factor in the economy cost structures.

MHRA has consistently spearheaded the call for changes that are essential for restructuring the electrical energy sector and are pleased that this has led to a reduction last year of 25% of the individual costs of electricity which in March this year will be extended to commercial operations.

MHRA notes the progress made in Enemalta, in so far as the ownership restructuring and capital injection that has taken place. This is a very important step but must not stop there, as the problems that MHRA had identified namely the low efficiency in generation, the poor grid infrastructure and the losses from distribution which had been estimated at 25 per cent of total output still have to be resolved.

MHRA also notes that the price for crude oil has over an extraordinary short span of time gone down to levels below that last seen in late 2008 during the financial crisis. Given that the forward buying and in-store products levels procured or committed to by the Enemalta or what is now an independent Government owned petroleum company are not known, MHRA expects the Malta Resources Authority to inform the stakeholders whether the latest developments on the international fuel prices are being reflected fairly in the local market.

MRA is there to pronounce itself publicly on these matters and to ensure fair competition amongst suppliers and that the interests of both the domestic and industrial consumer are safeguarded.

A meeting to this effect has been called by MHRA with MRA. Furthermore MHRA is calling on Government to specifically update MCESD on the energy strategy being rolled out to ensure that the maximum benefit in energy savings due to the lowering of international prices will be passed on to the consumers whether individual or commercial.

"The lowering of the fuel and utility costs to the individual user will give a big boost especially to the lower income earner which will reflect itself in increased economic activity. The lowering of the costs to the commercial sector will render it more competitive internationally and stimulate growth of the economy" concluded Tony Zahra acting president of MHRA