Power cuts linked to Malta’s economic model, Chamber of Commerce says

Malta’s energy distribution problems, much like its traffic problems, are directly linked to the country’s economic growth model, the Chamber of Commerce said.

In a statement issued on Tuesday following days of repeated power outages across Malta and Gozo, the chamber argued that Malta’s model of low-value growth, dependent on large numbers of low-skilled workers, has reached its physical limits.

The chamber acknowledged that higher electricity demand places greater strain on the distribution network. However, it said this increase was entirely predictable given Malta’s growing population, rising tourist numbers, and increasingly high temperatures caused by climate change.

Despite this, upgrades and long-term planning failed to keep pace, the chamber said, adding that the investments carried out so far have evidently not been sufficient.

Rather than continuing to announce the millions invested in repairs and upgrades over the years, the Malta Chamber of Commerce urged the government to calculate and publish the total expenditure required to resolve the problem once and for all.

This should then be followed by a realistic roll-out plan with clear implementation milestones, it said.

“We cannot speak of Malta Vision 2050 when we are still failing at the basics,” the chamber said. “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.”

The chamber also argued that Malta’s current framework does too little to reward energy efficiency or encourage consumers to use electricity more responsibly.

It warned that repeated outages are directly affecting economic activity, daily business operations and residents’ quality of life.

The situation is also undermining operational reliability, eroding confidence in Malta’s infrastructure and weakening the country’s economic resilience and competitiveness, it said.

The chamber concluded by urging the government to act urgently to address the problem and protect residents’ quality of life.