Regulator asked to order power surcharge audit

Enemalta has called for an audit into the way the water and electricity surcharge is calculated.

Investments Minister Austin Gatt told the corporation to ask the Malta Resources Authority (MRA) to commission an audit into the mechanism of the surcharge.

In a letter made public by the ministry, Enemalta's chairman, Alex Tranter, asked the MRA to commission an audit which would verify the validity of the mechanism used to calculate the fuel surcharge, recently increased to 67.5 per cent.

The corporation says that the surcharge does not even cover the cost of producing electricity but opted to call for the audit in order to put the minds of consumers at rest.

Doubts were raised, primarily by the Labour opposition, with regard to the validity of the mechanism being used to calculate the surcharge.

Mr Tranter said in his letter that the "speculation" is entirely baseless and appears to be motivated by purely "sectoral considerations". The audit should confirm that the surcharge is linked exclusively to fuel costs, he added.

Mr Tranter also referred to the integrity of the firm chosen by the MRA to carry out the audit, saying its independence should be beyond doubt in a way that satisfies critics of the reliability and credibility of the outcome of its findings.

The General Workers' Union, which has been vociferous in the criticism levelled at the surcharge, reacted to the news by saying that while it had no objections to the study, the move fell short of meeting its proposals on the matter.

The issue had led to a tense exchange between the union and the Prime Minister last year. Last January, the GWU proposed that a study be carried out by an independent body to gauge the effect of the surcharge on workers and pensioners. The study would then be followed by a revision and possible compensation for any negative impacts highlighted by the study, the GWU said.