Video: Gatt explains revised tariffs

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Infrastructure Minister Austin Gatt said this afternoon that the government had decided to reduce its proposed electricity tariffs, and cut projected revenue by €60 million, in view of expected oil price movements.

Speaking at a press conference this afternoon, he also confirmed that the capping on the surcharge currently paid by large enterprises would be dismantled in three stages by 2012 rather than being removed immediately.

Dr Gatt said the new tariffs would henceforth be revised every six months unless prices changed by more than 15 percent.

In terms of the new tariffs, people who used less than 2,000 units per year would pay 16c1 per unit instead of 19c1 as originally proposed.

Most families would pay between 65c and €1.85 per person per week extra as a result of the new rates.

Households, he said, would not be paying extra to cover the outlay for the surcharge capping, since those funds would be recovered from businesses.

He said that the bulk of Maltese businesses - 37,000 - used less than 20,000 units of electricity per year and would see their power bills rise by €5.50 per week.

Finance Minister Tonio Fenech said the budget would include an allocation of €20 million for initiatives connected to alternative energy. However the budget would not include provisions in advance for any expected cost of living increases next year.

see also http://www.timesofmalta.com/articles/view/20081023/local/new-tariff-proposals-not-seen-going-far-enough