Issue link: https://maltatoday.uberflip.com/i/1504886
NEWS ANALYSIS 9 maltatoday | WEDNESDAY • 2 AUGUST 2023 promised to "retain control over the source of electricity and distribution rights." The PN had also rightly criticised under investment in the energy distribution system promising "substantial investment" in the sector. There was no hint of the state shedding its control over energy distribution in the party's energy policy so far. In this sense the latest proposal jars with the PN's distrust of 'corrupt' deals which saw gov- ernment shedding public infra- structure to the private sector and foreign governments. And while questionable private in- vestment in energy provision did at least contribute to in- vestment in new infrastructure enabling Malta to shift from heavy fuel oil to natural gas, liberalisation in distribution would simply result in private companies using already exist- ing infrastructure, especially in a scenario where Enemalta re- tains ownership of the grid and simply rents its infrastructure to distribution companies. 4. Defeatist attitude on EU: The PN is right in questioning the government's preparedness in the face of the expiry of a der- ogation from an EU directive which could force the country to liberalise energy distribu- tion. But the PN could have done so by putting the onus on government, while supporting an extension of the derogation by another eight years. The PN is right in saying that the derogation from Article 4 on an EU directive regulating energy markets will expire in 2027. Thanks to negotiations conducted by a past PN gov- ernment, the EU had grant- ed a permanent exemption to Malta from rules which would have excluded Enemalta from energy distribution. But the ex- emption preventing third par- ties from competing with En- emalta in distributing energy will expire in 2027. Although the deadline has been noted in several government plans, the government has never drafted a roadmap on how it intends to proceed with this deadline. But instead of pushing for an extension of the derogation by another eight years as fore- seen in the directive itself, the PN wants Malta to liberalise the sector now. Neither is the PN making a case to convince the EU of Malta's particular circumstances dictated by the small size of its internal mar- ket as it had done in 2008. This also suggests a defeatist approach to negotiations with the EU. Surely the PN is also proposing a robust regulato- ry framework including strict conditions on the new opera- tors like automatic compensa- tion in the case of power cuts. But would not consumer inter- ests be better served by push- ing for reforms in Enemalta to foster meritocracy and make it more accountable to citizens? threw a lifeline to a sinking government Enemalta workers struggled for days to repair faults developed during the heatwave last week The promise of competition between rival providers offering different packages to consumers in the same way as mobile phone companies do today, hardly compensates for the loss of security such a proposal evoke