The government's proposed tariffs on utilities are "socially inverted", the Malta Chamber of Small and Medium Enterprises - GRTU said yesterday.
GRTU director general Vince Farrugia, who unveiled recommendations for utility tariffs yesterday, said the proposals were inverted because smaller consumers would have to face the larger bill increases.
The tariffs should be shelved pending further consultation, Mr Farrugia said in an appeal echoed by the president of the Malta Hotels and Restaurants Association, Kevin DeCesare during an extraordinary general meeting held yesterday.
As Mr Farrugia outlined ways of reducing water and electricity tariffs in households and businesses, he explained that the governments' quoted figures for a return on investment (exceeding €33 million) should be deducted from the total recovery costs (about €416 million) quoted for Enemalta and the Water Services Corporation.
Alternative financial sources, such as issuing long-term bonds by the government or Enemalta, should also be explored.
Other ways of reducing the recovery cost could be: Addressing Enemalta's structural and technical inefficiencies; exploring WSC's sharp increase in distribution costs (that rose by 71 per cent since 2006) to ensure that a verified monitory value is added to the tariff; and reducing water and electricity consumption through government incentives.
The GRTU proposed alternative energy incentives, which include a minimum 70 per cent rebate for households and a maximum 70 per cent rebate for the business industry. Apart from reducing the tariffs, this was environmentally friendly and would attract EU funding, he said.
For domestic use, the GRTU proposed having two tariffs: A guaranteed price option for a minimal 12-month period enabling consumers to plan for a calendar year and a multi-tier option to include peak hour use, intermediate and off-peak metering.
The GRTU also suggested monitoring the water and electricity consumption of households and industry through audits and the introduction of benchmarks, based on 2005 rates, before the surcharge was introduced and before the fuel crises.
Other proposed incentives are listed in the box below.
The GRTU proposed that the tariffs should be "totally shelved", the EU-challenged "discriminatory" capping mechanism (on utility charges for large enterprise) removed and the surcharge adjustment kept for the time being and removed when appropriate.
Speaking about the capping option, Mr DeCesare said it was unfair that the government was trying to sway public opinion against it by saying that some 87 companies had benefited from capping without specifying that these companies employed large numbers of people.
He insisted on a social impact assessment of the government's proposals and reiterated that their implementation would deliver a large financial blow to the industry, including job losses.
Mr DeCesare felt it was also unfair of the government not to mention the tariffs in the pre-budget document discussed by the Malta Council for Economic and Social Development.
Justyne Caruana, the Labour Party's spokesman for family and equality, said that in failing to carry out an impact assessment the government had shown a lack of interest in families and their quality of life.
GRTU proposals
Domestic electricity tariff proposals
• Introducing a two-tariff system that allows for a guaranteed price option and a multi-tiered option.
• Electronic payments against a discounted facility.
• Minimum 70-per-cent rebates on installation of solar heaters and photovoltaic panels.
• Introducing an Enemalta loyalty card for those who use less than their established benchmark.
Business industry electricity tariff proposals
• Maximum 70-per-cent rebate on installations of photovoltaic and solar energy.
• Voluntary payment of €20 annually to go towards eco-driven initiatives.
• The Malta Environment and Planning Authority to ensure all buildings over 1,000 square metres meet energy-efficiency requirements.
• A rebate system structured over 10 years to compensate for the removal of capping.
• Enemalta to offer a standard choice rate of tariffs and a multi-tier choice of tariffs.
Water tariff proposals
• Identify the cause of the increase in distribution costs.
• Removal of rental fees from water meters, to be included as part of a tariff structure.
• Hotels to further conserve energy by placing sub-metering in each room and placing a benchmark to that room.
• WSC to embark on a water audit scheme.