Updated | Employers, Chamber want compensation for blackout damages

Malta Chamber of Commerce joins MEA in calls on government to compensate businesses for damages from power cut • 'Businesses should rank before households on the scale of the planned compensation'
 

The nationwide blackout was caused by the explosion of a distribution centre in Marsa.
The nationwide blackout was caused by the explosion of a distribution centre in Marsa.

The Malta Chamber of Commerce has joined the Malta Employers’ Association in calling on government to compensate businesses who have suffered damages, including payment of wages, after a nationwide power cut last week on Tuesday engulfed the nation in darkness.

“Many companies had people turn up for work but were unable to operate. Maltese businesses paid the highest commercial energy rates in the EU, whereas household rates are close to the EU average, therefore businesses deserve priority in any compensation awarded for the power cuts,” the MEA said.

The Sunday Times reported that businesses will not receive any of the compensation being proposed for those left more than 12 hours without electricity. The financial package will only be given to domestic users, a government spokesman said. 

The news however came as a surprise to the Chamber of Commerce who said it was "disappointed" by the news.

"Coherent with its stance that wealth must be created before it is distributed, the Malta Chamber has always argued that such incentives and initiatives should be provided to the business community first, and then extended to households," it said.

"This same stance was taken by the Malta Chamber in the case of the reductions in energy tariffs. In the same way, the business community should be the first beneficiary of such compensation, as it is the same business community that creates the country’s wealth, which is then distributed by households."

The Chamber said that during last week’s outage, it was the business community, in a wide cross section of sectors that suffered the greater blow. Losses suffered by businesses were considerable and included loss of business, by tourism, hospitality and logistics operators; loss of hours of productivity in the manufacturing sector as well as loss of considerable stock by importers, distributors and shop owners across the board.

"The Malta Chamber is therefore strongly of the view that businesses should rank before households on the scale of the planned compensation."