Now that the electoral campaign has gotten underway, the major parties have started presenting their proposals to the electorate for the upcoming legislature. This, despite the slow start by the Nationalist Party in presenting any concrete proposals, which is all but clear that the party was not prepared for an election, let alone preparing the costsings for its proposals.

Let’s consider the Nationalist Party pledge to bring down the energy bills by 30%. Within one week we had three versions of what this would actually mean.

First, we heard how the subsidies are short-lived. Then we were told the bills will be so low that subsidies will not be required. And finally, it was announced that subsidies will be retained while energy bills would drop by 30%.

How serious is this?

The PN is also proposing that the meter rental charges will be removed. But nothing was said on what the financial impact on Enemalta would be. In other words, this would mean just another form of subsidies, with Enemalta being saddled with shouldering the financial burden.

So, we’re back to the same question – are the subsidies short-lived or not?

It is clear that when it comes to Malta’s energy sector, the Nationalist Party’s approach hasn’t changed. We all remember not so long ago when Enemalta was riddled with financial debt and faced crippling credit downgrades.

On the other hand, the Labour Party has launched its long-term plan for the energy sector in order to continue diversifying the energy generation and to enhance in particular the clean energy dimension.

Under successive Labour administrations, the Maltese households and industries have enjoyed low and stable energy prices that played a key role in making the Maltese economy one of the top performers within the EU.

Moreover, when finance minister Clyde Caruana explained that there is a “war chest” to protect the Maltese households and businesses from skyrocketing energy bills, his excellent track record in managing the public finances speaks volumes as to his credibility.

With Labour, citizens feel protected.

The same could be said for the numerous tax measures proposed by the Labour Party, in particular the EUR1,000 tax bonus for all workers, including the self-employed.

As always, it comes down to credibility.