Malta Hotels and Restaurants Association (MHRA) refers to the news [1] stating that “Malta’s (domestic) electricity prices are below EU average,” when “factoring in purchasing power standards.”
MHRA states that “such reports are misleading and reiterates the fact that Malta’s average industrial electricity prices (Euro per kWh) remain the highest in the EU as can be seen from the below table and as quoted from Eurostat.”
Malta in 2011 and 2012 was 0.18,9, the EU27 was 0.13,7 in 2011 and 0.14,4 in 2012, while the EA17 was 0.14,3 in 2011 and 0.15,1 in 2012.
Over the past three years MHRA has been “calling the Government to address the energy issue with a sense of great urgency since this has been threatening the long-term sustainability of the hotel and restaurant industry.
MHRA President Mr Tony Zahra stated, “Malta still has the highest industrial electricity prices in the EU and this can be referred to as the stealth threat of our hotel and restaurant Industry. Indeed, MHRA is on the record to have stated at various forums, including the MCESD, that profits generated by operators in the hotel and restaurant industry are to a good extent being eaten away by incredibly high electricity prices. “
Mr Zahra reiterated that, “Our currency is the euro and our benchmark must be the euro because it is the currency with which we carry out our businesses today. From the above it is clear that we are losing badly on our competitive levels due to these overheads.
“Let’s keep it simple and compare one country with another through the common currency we all use rather than confusing the issue by bringing in averages and purchasing power standards. Bills are paid in euros and not in pps euros” said Mr Zahra.
Looking into the future Mr Zahra said that the Hotel Industry sustainability has to be tackled now by all parties to avoid a crisis in 4 or 5 years’ time which can do great harm to the industry.