Vince shrugs off government’s blame game

GRTU chief says nobody will fall for government’s line that he ruined its plans for energy capping.

Matthew Vella
The director of the Malta Chamber of SMEs Vince Farrugia has shrugged off accusations by government that he is to blame for having scuppered Austin Gatt’s plans to cap the energy surcharge for some 120 large companies and hotels.
Farrugia was touted by high government circles and ministers to blame for reporting the favourable billing scheme enacted by government for big industry, to the European Commission.
Brussels has pointed out that the application of a maximum limit for big industry, was effectively a discriminatory subsidy to large consumers.
But government representatives have told industrialists, whose energy bills risk multiplying as Investments Minister Austin Gatt prepares a total cost recovery of Enemalta’s energy bill, that Farrugia was to blame if there will be no capping of energy bills.
“Look, I don’t think industrialists are stupid enough to swallow that,” Farrugia said. “If anything, those ministers are honouring me. They simply are admitting that I am a faithful European citizen who knows EU law more than they do.”
Farrugia added that Austin Gatt knew from day one that the capping was in breach of EU laws.
“Austin told us at an MCESD meeting that capping was probably in breach of EU laws and that he was going to chance it. Government is not a gambler, and it certainly should not gamble with our money,” Farrugia said.
In 2005, the GRTU requested the Office for Fair Competition to direct Enemalta Corporation and the Water Services Corporation to extend their favourable billing scheme, reserved only for enterprises in the licensed accommodation sector, to all enterprises “irrespective of the sector in which they operate”.
GRTU contended that the scheme was discriminatory to enterprises in other sectors and was issued on the strength of the monopoly enjoyed by both corporations.
The GRTU said the tariffs and the energy surcharge itself constituted breaches of the European Directive on Electricity, which prohibits cross-subsidisation or discrimination in payment on energy usage.
In 2006, the GRTU presented a formal request to the European Commission to investigate the surcharge capping in a bid to revise the exercise.
In comments to MaltaToday, Farrugia once again reiterated his attack on capping.
“Gonzi himself said had there been no capping, the consumer surcharge would have amounted to 75% and not 95%, which means it was us who were paying for the capping of energy bills for the industries. It’s been a reversal of Robin Hood all along.”
Farrugia also attacked the government for failing to implement any alternative energy policy that would have reduced the fossil fuel bill for Malta.
“Not only did capping discriminate, but it also stopped the large companies from investing in alternative energy sources.
“And the EU funds are available, but when the GRTU and the Valletta local council asked for structural funds to create an energy-saving plan for Valletta, our project was killed bureaucratically. We collected €300,000 from sponsors and we needed €1.8 million from the EU. Six months of voluntary work down the drain because of so much information demanded by the bureaucracy.”
Farrugia again accused the Malta Resources Authority, which is the national regulator that monitors any price increases on utilities, of sitting on the fence throughout the entire saga.
“How can I pay my taxes for a regulator that does not do its job?” Farrugia said.

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