The Chamber for Small and Medium Enterprises - GRTU yesterday called on the government to withdraw its proposed utility tariffs, saying these did not reflect the country's real needs.

The GRTU said that, based on its calculations, the new water and electricity tariffs, which will replace the surcharge, do not need to make bills any higher than they are.

As a matter of principle, the GRTU said it disagreed with the government's statement that the matter was now in the hands of Enemalta and Water Services Corporation.

It was the government's responsibility to ensure the country had an adequate supply of energy at a fair price. It should look at the problem globally and ensure the community was not burdened with payments it could not afford.

The GRTU said consumers were already paying a tariff, plus the 95 per cent surcharge, as well as excise duty on fuel they purchased for transportation purposes. All these amounted to a revenue of €519 million for the government.

From the excise tax on fuel alone, the government was collecting €104.5 million. It proposed that part of these funds should be used to keep the tariffs low. The GRTU said it had studied the government's proposals in detail and believed the estimate of €415 million, which the government was planning to collect to cover Enemalta and WSC's costs were exaggerated.

It said the proposed tariffs were exorbitant and included a €20 million cover for Enemalta's inefficiencies.

Consumers should be given the choice to bind their tariff from a year in advance and consumers who pay electronically should be given a discount for saving time, money and postage.

The GRTU recommended that households should be subjected to an energy audit to see how alternative energy could be used for their individual needs.

The Malta Employers' Association also called on the government to postpone any plans to revise utility rates until March.

It insisted that the business community is already facing considerable uncertainty because of a drop in order books caused by the international recession and this uncertainty should not be exacerbated by an increase in electricity charges.

It would be wiser to wait until the dust settled before taking any action, the MEA said, stressing that it was asking for caution not procrastination.

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