‘Predictable strain, unacceptable disruption’ – Malta Chamber urges immediate action over power cuts

The Malta Chamber of Commerce, Enterprise and Industry is seriously concerned about the recurring power outages being experienced across Malta and Gozo.

As temperatures reached heatwave levels, power cuts have been witnessed in localities across the country, with many having sleepless nights due to the hot weather.

“Whilst one understands that an increased demand increases strain, The Malta Chamber would like to point out that this increase was predictable – given the trends in increase in population, increase in number of tourists and temperature soaring brought about by climate change, all of which place additional and predictable pressures on existing infrastructure,” it said.

“It is evident” that the upgrades and forward planning did not keep pace, the Chamber said.

The Malta Chamber stressed that it has repeatedly warned that any investment carried out in infrastructure upgrades must also take into consideration and meet future demands.

It said that the frequent disruptions are increasingly disrupting economic activity, daily operations and quality of life, ultimately undermining operational reliability and eroding confidence in the country’s infrastructure.

“This leads to frustration, inefficiencies, lost productivity, and growing uncertainty for businesses. It is evident that the investment carried out was not enough.”

Rather than visibility on the millions invested in distribution network fixes over the last years, the country needs visibility on the total investment expenditure required to ensure that this problem is solved once and for all, it said. The Chamber added that this should be supported by a doable roll-put plan with clear implementation milestones.

The root cause of this energy distribution capacity problem, just like the traffic issue is linked directly with the country's economic growth model, the Malta Chamber said. "It is highly evident that the economic growth model based on low value added growth that requires high input of low skilled workers has reached its physical limits.”

This is why, the Chamber said, transforming the economy to achieve much higher productivity levels should be Malta’s most important holistic project.

“Moreover, energy security is not only about generating more electricity. It is also about using it more wisely. The current framework does too little to reward energy efficiency or encourage consumers to use electricity more responsibly.”

The Malta Chamber is urging the Government to act with urgency and resolve. Addressing this critical issue is essential to safeguard economic resilience, maintain competitiveness, and protect the quality of life of residents and the sustainability of business activity.

“We cannot speak of Malta Vision 2050 when we are still failing at the basics. If we cannot guarantee a reliable electricity supply today, any discussion about the Malta of 2050 risks becoming little more than an exercise in rhetoric.”