Power surcharge reduced

The electricity surcharge will be trimmed down to 47.4 per cent in January and February and fuel prices in general will be marginally cheaper, as the government yesterday gave the people a belated Christmas present.

The surcharge will be slashed from the projected 56.2 per cent in January and 57.4 per cent in February to 47.4 per cent, reflecting the reduction in international oil prices, Investments Minister Austin Gatt said yesterday.

With effect from today, the price of unleaded petrol, lead replacement petrol, diesel and kerosene will go down by 6m, 6m, 4m, and 2c9m per litre respectively. The price per ton of thin fuel oil - 200, 450, and 950 degrees - is down by Lm3, Lm3.50 and Lm4 respectively.

The government had unveiled an unpopular surcharge of 55 per cent last October to cushion the impact of spiralling oil prices, with an additional 1.2 per cent to be levied monthly every month as from January.

Speaking to reporters during a tour of the Delimara power station, Dr Gatt warned that the adjustment in the fuel surcharge did not necessarily mean that the rate would not be revised upwards in future.

Consumers are still awaiting the water and electricity bills covering the period November to December 2005, which incorporates a surcharge of 55 per cent - up from the 17 per cent introduced at the beginning of the year.

Despite the surcharge, electricity consumption shot up by 2.4 per cent over last year, the minister said. Last year, consumption had increased by 2.1 per cent over the previous year.

In a statement later, the Investments Ministry explained the reasons leading to the reduction.

Enemalta paid Lm117.62 and Lm215.87 per ton for light sulphur oil and gas oil respectively last October while it paid Lm109.29 and Lm198.07 for the same products it will be consuming in January and February.

The cost for electricity generation is expected to reach Lm76.1 million per annum.

Enemalta is drawing up a long-term plan to guarantee that electricity generation can cope with the demand and at the same time improve the efficiency of electricity generation plants.

Pointing out that any potential investment would ensure the rate of emissions will remain in line with international criteria, Dr Gatt said the plan is expected to be completed by March and will then be submitted to the Cabinet.

Dr Gatt said the government was considering the possibility of striking a strategic partnership with another company to share scientific information with Enemalta.