Recently released Eurostat data for the first half of 2021 reveal that Maltese households were benefitting from the lowest electricity rates in the euro area and the third cheapest across the EU.
While the rest of Europe is struggling with skyrocketing energy prices, in Malta, Government is shielding households and businesses from the vagaries of international shocks.
The most expensive bills are in Germany, where consumers pay more than twice the Maltese rate. It should be noted that during 2021, while prices in Malta remained stable, those in the EU increased in 15 countries. The biggest increase, at 15%, was in Slovenia followed by a 7% increase in Estonia.
Eurostat confirmed the extent to which electricity bills have decreased since the change in Government in March 2013. In the first half of 2021 the price of electricity in Malta for households was €0.13 per kilowatt hour. This when in the euro area the price is almost €0.22 per kilowatt hour, or three-quarters more than what we pay.
The most expensive bills are in Germany, where consumers pay more than twice the Maltese rate.
In 2013, electricity was worth €0.17 per kilowatt hour. At the time the price in Malta was the thirteenth highest across the EU. Which means that in seven years Malta has recovered ten places in the ranking of the lowest electricity prices. Eurostat statistics indicate that in the last Conservative legislature electricity bills rose by 68%. At the same time across the EU there was an increase of only 26%. This confirms that the previous Government had raised bills almost three times the European average. In contrast, the current administration reduced electricity by 23% when in the rest of Europe electricity rose by 7%.
Between 2008 and 2013 Malta had the highest increase in the price of electricity for households in the EU. Between 2013 and 2021 Malta had the fourth largest drop in the price of electricity in the EU. Malta has the lowest rate of light tax in the EU.
Moreover, while in Malta electricity prices for the industry has fallen by 25% in the last eight years, the average price across the euro area rose by 6%. In contrast during the last Conservative legislature, the price of energy for industry was higher by 47%, while in the EU there was an increase of 24%. While in 2013 electricity prices for industry were 26% higher than the average price across the EU, in 2021 the price in Malta was 10% lower.
Between 2008 and 2013 companies in Malta had seen the eighth highest increase in electricity prices from among European countries. Since 2013 they have seen the second highest decline.
In 2021 across the EU the price of electricity rose by 3% for businesses while in Malta it remained stable. The biggest increase was in Bulgaria, 18%, followed by 16% in Estonia.
The energy policy gap is having a severe impact on our country’s economy. Electricity rebates are one of the main causes of the decline in the rate of inflation. At the same time companies in Malta today no longer have a greater burden than European energy price companies.