Maltese Electricity Bills Were Facing A €1,700 Increase, Equivalent To An Average Monthly Wage
Malta’s electricity subsidies, launched in the wake of the global energy crisis, are saving households at the very least €1,700 a year, Energy Minister announced.
“One glance at our neighbours can show you how serious the repercussions of increasing electricity bills can be,” Dalli said yesterday. “In Italy, some are talking about electricity bills increasing fivefold. According to our very conservative estimates, we are giving families at least €1,700 a year [through electricity subsidies], which is equivalent to an average monthly wage.”
“We’re doing this consciously because we know that touching electricity prices, as PN governments had done, causes huge ripple effects on households and businesses. We are doing this consciously to rein in the rising cost of living on things we have control over.”
Dalli’s statement offers a brutal reflection on how much energy prices have increased in recent months – back in February, Prime Minister Robert Abela said subsidies resulted in families saving an average of €500 a year in electricity bills.
This has now more than tripled within seven months.
Although the government hasn’t published official details on how much money it is spending, Times of Malta recently reported that around €250 million in public funds could be spent by the end of the year, with the bill for 2023 estimated at anywhere between €300 and €400 million.
Thanks to this decision, Malta currently enjoys the third cheapest electricity prices in Europe, just above Switzerland and Norway, a recent comparative study by Euronews has shown.
However, it has had its ripple effects on public finances, with the government embarking on a cost-cutting exercise that has seen the University of Malta’s budget slashed by €1.1 million.
Asked whether she can pledge that electricity prices won’t rise next year, Dalli said the government is constantly monitoring the international situation and is determined to continue offering energy stability.
“We can remember what happened when electricity prices increased substantially in 2013… we can remember what impact it had on businesses and factories and how unemployment shot up. Thanks to our policies, we have a historically low unemployment rate and we’re offering stability.”
Do you think this policy is sustainable in the long run?
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