FOI, Enemalta agree on power factor correction incentives for industry on a trial basis

The FOI and Enemalta Corporation have discussed at length a detailed plan prepared by the corporation aimed at reducing energy losses, while giving incentives to heavy consumers of energy among industrial and commercial companies.

The Federation called on the assistance of a number of electrical engineers from industry itself to advise it on the Enemalta scheme. As a result, the FOI has signified its agreement to a voluntary scheme that the corporation will apply on a trial basis for its industrial customers who have a service of 100 amps or over. The scheme will essentially consist of:

¤ a change to electricity solid state meters that will now be capable of registering readings in terms of k VA h and kVA;

¤ industrial consumers participating in the scheme will need to achieve a power factor correction in their installation not below 0.92;

¤ they will need to invest in equipment that allows them to achieve this level of power factor correction; and

¤ Enemalta will charge users achieving these improved levels of power factor correction an improved rate on all their consumption according to the level of power factor correction achieved, provided it is not lower than 0.92.

The Federation looks forward to a quick, successful introduction of the scheme. It has also reminded Enemalta that energy to industry in Malta is expensive.

Several years ago Government instituted a scheme that prescribed lower rates for off-peak hours to industrial concerns that achieved a minimum level of power factor correction improvements but who were high consumers of energy.

The FOI believes that the scheme for a favourable rate in off-peak hours should now be further extended to include enterprises that are in a lower consumption bracket.

Industrial restructuring and improvements in industry's internal efficiency is not enough. The public sector needs to emulate the private sector and likewise achieve productivity gains and higher levels of efficiency that enable it to improve its financial performance and to be able charge industry less for its services while providing a better level of service. This is the route that private industry is required to take to retain its customers.