Predictable Strain, Unacceptable Disruption

The Malta Chamber Urges Immediate Action on Power Grid

The Malta Chamber of Commerce, Enterprise and Industry is seriously concerned about the recurring power outages being experienced across Malta and Gozo. 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. Yet it is evident that the upgrades and forward planning did not keep pace.

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

These 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.

At this point, 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, 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 our economic growth model. 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. Which is why, as The Malta Chamber has been long advocating, transforming our 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 urges 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.