Higher surcharge to be based on pro rata daily average consumption

If you've gone into a power-saving frenzy after the latest hike in the utilities' surcharge was announced, you'll probably be disappointed to find out that your efforts may be dampened by the way consumption is calculated.

Most households had their electricity meter checked months ago, which means that Enemalta Corporation will not have a reading right before the surcharge went up in a way that would allow it to charge at 95 per cent only the consumption that followed the July 1 announcement.

In fact, according to a spokesman for the Infrastructure Ministry, Enemalta will work on a pro rata daily average based on the actual readings of consumption taken for every household and will allocate the different surcharge rates accordingly.

But this means that if you managed to cut consumption significantly after the new surcharge rate was announced, the tariff will still be levied on the average consumption since your last reading.

When questioned on this point, the ministry simply pointed out that the reduction in consumption would be progressively reflected in the bills, adding that people can communicate their own meter readings to Enemalta, by phone or via internet. The corporation will "take that reading into account" in the workings.

The new surcharge rate, which is almost double what it was previously at 50 per cent, was announced by Infrastructure Minister Austin Gatt after he hinted a day earlier that the new rate could hover at around 115 per cent. At the press conference announcing the new rate, the minister pointed out that the government was absorbing the difference by increasing its subsidy to Enemalta.

Asked why the announcement had been made by the ministry rather than by the body tasked with regulating the state-owned energy corporations, the Malta Resources Authority, as happens in other sectors which have monopolies or semi-monopolies, the ministry said that, since rates are levied by Enemalta, it is the corporation which announces its tariffs. It does so after giving notice to the regulator as is normal procedure.

About 30,000 households remain exempt on grounds of their low income. The capping for industry and hotels also remains unchanged. However, the government has announced that it is working on replacing the surcharge with a new tariff system.

When announcing the new higher surcharge, it was estimated that, on average, consumers would be facing increases of between €16 and €250 each time they pay their bill.