Scheme on energy losses reduction linked to incentives to industry

The Federation of Industry and Enemalta Corporation have discussed a detailed plan prepared by the corporation aimed at reducing energy losses for the benefit of Enemalta while giving incentives to high consumers of energy among industrial and commercial companies.

The FOI sought the advice of a number of electrical engineers from industry on the scheme presented by the corporation.

As a result, the FOI has agreed to a voluntary scheme that will be applied on a trial basis by the corporation to its industrial customers who have a service of 100 amps or over.

The scheme will essentially consist in a change to electricity solid state meters that will now be capable of registering readings in terms of kVAh and kVA.

Industrial consumers participating in the scheme will need to achieve a power factor correction - a measure related to the amount of power lost - in their installation not below 0.92, if necessary through investing in new equipment.

Enemalta will charge users achieving these improved levels a better rate on all their consumption according to the level achieved.

The FOI said it looked forward to a successful and quick introduction of the scheme. It also reminded Enemalta that energy to industry in Malta is expensive.

Several years ago the 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 bracket of consumption," it said.

"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 to 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."