The surcharge on electricity has already been cut by half, the Ministry for Industry claimed yesterday.

The hedging done over the past months has cut the price by two per cent. Sales of existing hedges have further reduced the price by 12.5 per cent. There is also the government’s direct subsidy amounting to Lm1 million, a further 12.5 per cent reduction, and the temporary excise on petrol (a further reduction of 3.5 per cent).

The ministry was replying to comments made by Labour leader Alfred Sant when speaking at a party activity in Bugibba.

Over the past months, the ministry said, fuel oil rose from $311 a ton to $411, the highest price in the past four years. The surcharge on these prices would have been 80.5 per cent had it covered all the price increases. But the government had realised it would be too much of a burden on the economy and had decided most of the increase should be borne by Enemalta and the government.

Dr Sant claimed that cutting the surcharge by half, as Labour has committed itself to doing as soon as it is in government, Maltese families will suffer less burdens and Malta’s competitiveness will be enhanced.

Sarcastically, the ministry countered that by the same argument, if the surcharge is removed totally, Malta’s competitiveness will be even more enhanced. Dr Sant could even promise to provide electricity for free, but these, the ministry said, are unrealistic promises.

And, when he was Prime Minister, with oil prices at $12 a barrel, the prices his government charged were equivalent to a 97 per cent surcharge.

Dr Sant also spoke on the regeneration of Bugibba, social justice and Mater Dei Hospital which, he said, took too long to be completed and could still have been a state-of-the-art hospital with less expenditure.