VIDEO: Government presents new tariff proposals, unions, GRTU disappointed

Marco Cremona

Oct 25th 2008, 15:13

This is only the tip of the iceberg....... mark my words. There's more to come.

With the removal of subsidies, the cost of water production to WSC will more than double so the water tariffs will have to revised to also reflect this reality. Government may decide to postpone this further increase in water tariffs to a later stage.

Government should also inform the social partners and the public in general when it plans to introduce the sewerage tariffs to make good for the investment and operational costs of the new sewage treatment plants; as well as for the maintenance of the Euro 50 million stormwater infrastructure being planned to avoid flooding.

Do the revised tariffs make good for the investments being planned in enewable energy such as the Euro 130 million for the wind farm?

In the near future it is also expected that government increases the eco-tax on waste substantially, so as to make good for the investments and operating costs of the landfills and the waste treatment plants (including Sant Antnin and the waste treatment facility at Marsa).

I would have expected government to put all these issues on the table for a holistic discussion.

J Martinelli

Oct 25th 2008, 14:19

Is it possible that of all the MLP and NP (and others too) bloggers do not care to explain to Charles Abdilla's question, about CAPPING ?

The word 'Capping' when used in financial terms means that a rate or an amount set will not be exceeded.
Example: One borrows money at say, 4% + 1 (floating rate) which means 1% over Prime rate of interest, say, 4%. It also means that the rate can go up or down depending on the Prime rate. So, if the Prime goes down to, 2% then the interest rate charged will be 2% + 1% = 3%. If however the Prime goes up to 7% the resultant rate becomes to 8% UNLESS there was an initial CAPPING agreement which capped the loan rate to 6%, say. That means that the bank had agreed not to charge above the capped rate of 6%. The bank takes the risk.

Example: A company is charged 'X' euros per unit for electricity plus a surcharge based as a percentage of the consumption. So if the bill is e100 then the surcharge is e95 UNLESS the amount is CAPPED at a predetermined amount.

I hope this helps.

Ray Gatt

Oct 24th 2008, 12:21

@ Michael Tabone - The govt. does not buy oil today for tomorrow. Apparently the oil is bought for a stretch of six months each time. So if today's price stays put or even goes lower, in about six months time I expect the surcharge to be a lot less. In the absence of this, I will be the first to critisize my party in govt. One can understand all the world is going through problems, even traditionally powerful countries like the US, UK, EU countries and now even China, but when there's an opportunity to relieve the citizens from financial pressures, I expect it to be done.

@ Mr. J. Borg (MLP blogger) the above is what I think. The truth is I'm prepared to critisize my party where I feel is not right, and I'm even prepared not to cast my vote in any given election to protest. My question to you is; are you man enough to do the same vis a vis your party. I'm not a diehard or anything. I just won't ever vote labour.

Charles Abdilla

Oct 24th 2008, 07:39

Dear ALL...

Will someone explain what the word `CAPPING` really means...??

It is being used very often during the MCESD meetings, without being explained to Mr. & Mrs Public...

Thanks

A Camilleri

Oct 23rd 2008, 20:26

The real trade unions (those representing employees) should think again if they are against the proposals. The commercial sector will now be paying for the industry capping, as opposed to the current situation where the subsidised cost was being financed by all the paying consumers, including households. As regards complaints about the government forging ahead even if an agreement is not reached, were there similar protests when some years ago employees were made to forego public holidays falling on a weekend in similar circumstances?

Joseph Brincat

Oct 23rd 2008, 19:09

MCESD Kemm ser iddumu thallu lil Gvern jghaddikom biz-zmien.

Tridu twaqqfu dawn it-tarriffi? Min ihaddem jghati is-sensi lil kull impjegat li ghandu, u min ma jiddikjarax kemm ghandu dhul ezatt jibda jghamel hekk halli jhallas taxxi kemm suppost.

Imma jien ninsab cert li hadd minnkom mhu ser jghamel hekk.

Allura hallu lil GonziPN jaffeg.

M Attard

Oct 23rd 2008, 18:41

Dear All,

with the proposed increase in tariffs, the government is doing exactly the opposite of what other governments are doing on the eve of their annual budget.
The article below was surely not written by an 'MLP elf'!

http://www.bloomberg.com/apps/news?pid=20601109&sid=aILzYDSrUpZ8&refer=home

Maybe the honourable minister would care to go through it.

M Zammit

Oct 23rd 2008, 17:50

@ B Sant
"Liberalise the energy sector .
Transfer subsidies to alternative energies "

The best comments i have heard so far on the subject.

If only the GM could take note.

J. Buhagiar

Oct 23rd 2008, 17:37

One thing is certain from what I read.

This change has NOTHING to do with the increase in the price of oil.

This oil increase trend has been changed into an opportunity to finance and solve a host of other issues that need financing - spread over the unit cost of electricity!

Households and all small enterprises will need to bear this cost and suffer the most.

Increase income tax or VAT if Malta is in such a desperate situation!

Remember that eversince we moved to a free market, even the price of bread made by small entrprises are free to increase prices. Importers, distributors and service providers including the supermarket, white good outlets, car mechanic, electrician etc will definitely increases if this goes through.

Where on earth is a surcharge of over 95% plus the added round of price increases this will bring with it, going to come from in our budget.

Bottom line is that as I understand it - Dr. Gonzi is determined to go through with this so that he would then be able to follow his promise of reducing income tax.

If a reduction in tax follows, it would be the most unfair move ever.

M.Spiteri

Oct 23rd 2008, 17:22

@A. Vassallo

Thanks for the clarification as to the bills - really wasn't sure on how the system actually worked. Thanks

P.Schembri

Oct 23rd 2008, 16:59

Us hungry cats feed the fat cats. How's that for justice? Is that to be our burden who are living from hand to mouth? The way things are running the Government should subsidise us, the workers, because the salaries are being devalued daily. Inflation is ruining us workers. The government should help us or at least give us a substantial increase in our salaries.

E. Azzopardi

Oct 23rd 2008, 16:52

The only thing which really bugs me is that there are so many but so many of those who are being subsidized. I am convinced that there are those families who REALLY need help but I am also truly convinced, and I am no alone in this, that not all of them need this help. This has been voiced by many over and over again. This is what is really bothering a lot of us.

Joe Pace

Oct 23rd 2008, 16:35

It is incredible, Malta is the only country in Europe which does not fluctuate the prices of electricity and fuels (gas and diesel), at least in practice. The international price of oil is half what it was it was months ago, and we are still paying the same fuel prices, and now HIGHER electricity bills. I see only one option,

emigrate to a more civilized country where my intelligence is at least respected.

R.Scicluna

Oct 23rd 2008, 16:35

@ J Borg

I am no PN blogger.... i voted PN as it was the only party that makes any sense..... no one is ever happy to pay higher rates but dialogue means sit down, listen but in the end the government has to take the decision....

vincent magro

Oct 23rd 2008, 16:19

li il-gvern(u kull gvern) jiddeciedi anke jekk ma jintlahaqx ftehim,nahseb li hekk ghandu jkun. ghax x'jigri jekk il-ftehim jibqa ma jintlahaqx? dan izda ma jnehhix ir-responsabbilta morali minn fuq il-gvern li kemm jista jkun jara li jintlahaq il-ftehim mal-partijiet socjali kollha.
jekk illum qed naqblu li l-capping hu hazin,dan ifisser li se jibqa hazin fit-tlett snin li gejjin sakemm jispicca ghal kollox.
vince farrugia ghandu ragun ghax int ma tistax taqbad u tissussidja parti mill-industrija, u parti ohra le,meta dawn qed jikkompetu ma xulxin fl-istess generu u ghall-istess suq.

Mario De Bono

Oct 23rd 2008, 15:59

Vince Farrugia was the only one who spoke some sense in all this. what does the mhra president want? Capping to pay for his cars?

Phil Press

Oct 23rd 2008, 15:57

Surely, it is the hotels that consume the most electicity and water, compared to an average consumer. so why are we being made to pay more ?. To make more money for the hoteliers?.

C Calleja

Oct 23rd 2008, 15:56

whats keeping the uhm from resorting to what it did 10 years ago ? That is protests, rallies and street manifestations.

Alex Ellul

Oct 23rd 2008, 15:54

The chain of events does not commence with the Maltese government raising the price of electricity, but with OPEC raising the price of oil, which in turn raises the price of electricity etc etc. finally reaching the consumer as you rightly commented.

The world has already gone through a similar event when OPEC raised the price of crude oil in 1973. Then the price of crude crashed and was kept at a reasonably commercial level for many years. It seems that today's OPEC leaders have unlearned this lesson and need to relearn it again. The world is already scientifically and economically adjusting to the price of crude, which will eventually crash and then we will be back to a normal and just price of crude for many years. You just wait and see.

C. Busuttil

Oct 23rd 2008, 15:52

@Charles Camilleri
Govt should set the example with its own departments and install photovoltaic panels in these departments, to date only a handful departments have such panels. Know why ? The directors in the majority of Govt. departments are only interested in their performance bonus and they can claim this by reducing spending, installing PV panels will increase this spending, which is financed from the fund allocated to every single department each year.
Now besides greedy head of departments, we also have to pay for those hotels, factories, etc that during the last 3 years have done nothing to invest in alternative energy resources.
I agree that everyone should do his part to soften the impact, but NOW I also expect that we normal citizens be given a part of the profit these industries make, since we are to shoulder part of the electricity they consume. Furthermore, how can we be sure that they are not wasting and being accountable ?

edward degaetano

Oct 23rd 2008, 15:52

Agreed Alex, we the so-called middle class wage earners seem to bear all the subsidies.The self inflicted single parent swindlers, the person who chooses not to work officially or none at all to the under declared businessman. Now we are being asked to subsidize the power stations extension so Enemalta can supply among others smart city, making more money in the process. Everbody seems to require assistances from the pensioner to a foetus, from the illegal immigrant to the social welfare con artist,
all at our expense.

Michael Tabone

Oct 23rd 2008, 15:49

Just to mention today I saw on the news that the price of oil just went down to 66 $ per barrel (or something like that)! That's less than half of what it was when the current surcharge was raised. In other words, the government needs to decide what it's going to do. The price of has come to a decent price.
After all, it was the government that said that prices in Malta need to reflect what's going on in the rest of the world . I hope they stick to that. Because right now we are paying way more than what we were paying previously and the price of oil has decreased A LOT!

B Sant

Oct 23rd 2008, 15:49

Liberalise the energy sector .
Transfer subsidies to alternative energies

Suzanne Buttigieg

Oct 23rd 2008, 15:30

Like most, I am against subsidies except when they are aimed towards the sick and the (really) poor. The government should make it a point that a house visit is made to all benefiting from subsidies to make sure that there are no abuses. Anyone drinking beer all day at the pub and smoking 10 cigarettes a day or more should not benefit.
As regards to hotels and factories, the subsidies should not be terminated abruptly, but the government should make sure that the subsidies are being used turn their workplaces greener, eventually.

A.Vassallo

Oct 23rd 2008, 15:20

@ M. Spiteri

When a family is classified as needy (and we have about 30,000 of those in Malta and Gozo), they do pay for their utility bills, but they either do not pay any surcharge at all or they pay it at a reduced rate.

@ Carmelo Briffa

There is no union called Haddiema Maqghdien but there is one called Union Haddiema Maghqudin or UHM for short, if you want.

Charles Camilleri

Oct 23rd 2008, 15:15

Will the social partners please come up with a solution by telling us from the money will come. Nobody it seems, wants to be hurt but finally the bills for imported oil has to be paid from somewhere. Putting away Govt. solutions it seems that the only solution available is to raise taxes (direct/indirect) to pay for our oil. Bills for these commodities in other countries have been raised already. The social partners have to realise that we face reality of facts and everyone has to do his part to soften the impact.

Emmanuel Xuereb

Oct 23rd 2008, 15:07

The "divide and rule trick" strikes again!! One guess who is the politician-guru behind this brilliant move. Flimkien kollox possibli. Mhux hekk!!!!!

jesmond zammit

Oct 23rd 2008, 15:03

Meta tisma l kummenti kollha tinduna li mhux fighters ghandna jiddefenduna imma nies li kuntenti joghgbu lil gvern . Ghax kumment li qal tal kamra tal kummerc li hu l mument li kullhadd irid jerfa l piz, kullhadd jaf li dan mhux il mument, izda l mument li tghin lil poplu

Antoine Grima

Oct 23rd 2008, 14:32

Government of the people , Together everything is possible ...What is hard to swallow is that as always we will just sit and moan and moan and nothing else.

apgrech

Oct 23rd 2008, 14:17

Government raises the fees to industries and to consumers;
Industries raise their prices to store owners;
Store owners raise prices to the consumers.

Somehow they all recover some of the money but the consumers end up paying the higher fees plus the higher prices because of higher fees.

Hope the government ends up with a non-confidence vote and will be toppled soon before it topples the life of many of us.

M.Spiteri

Oct 23rd 2008, 14:11

Just out of curiosity - when a family is classified as needy and does not pay for its utility bills. Does that mean that they can consume as much as they want? Or is there a system whereby they are charged if they exceed a stipulated limit?

E Gatt

Oct 23rd 2008, 13:45

Considering that there are so many groups trying to get a better deal, this sounds like a fair compromise to me.

Those entities that enjoy ‘capping’ benefits will have a 3 year period to adjust to more realistic fees and explore ways of investing in energy saving projects.

Consumers and business users will eventually be relieved of subsidising the capping entities in three years’ time.

Hopefully Enemalta will now embark on an efficiency programme itself by offering early retirement schemes to its surplus workforce, reducing waste (example street light remaining switched on during the day), funding a public campaign on how households can reduce their carbon footprint and offering better ‘buy back’ rates to consumers that sell their surplus energy (from solar panels and wind fans) to Enemalta.

Tony Borg

Oct 23rd 2008, 13:37

Why should the smaller hotels (which do not benefit from capping) subsidise the bigger hotels? If the capping is being phased out over three years period the least we expect is that the new tariffs are also phased in over three years.

Joe Galea

Oct 23rd 2008, 13:37

Let's hope the Unions don't give up and hold strong against these disastrous tariffs proposal. We are already on our knees and the government wants to give us the knock out with this.

Fenech MD

Oct 23rd 2008, 13:33

U Turn?
Last Tuesday on Bondiplus Dr Borg Olivier said that the PN are not afraid of taking decisions, and they are not 'chickening out' of this one! The tariffs are there to stay! he said.
What?

J Farrugia

Oct 23rd 2008, 13:30

The government must govern whether the social partners agree or not. If they want to govern themselves they will just have to say what their proposals are. How are they going to collect the 365 million euros needed to have these commodities. We have to pay the suppliers, and from somewhere they have to be collected. Our pockets are too small. who is going to pay, while others waste??? And this is not a question of politics. It's a matter of living.

william sciberras

Oct 23rd 2008, 13:28

It is quite disappointing to see that the government and the representatives of the " large enterprises" deem it fit to agree between themselves to spread the resulting balance over all the consumers.

I quite understand this from the point of view of the enterprises concerned as this is an obvious benefit for them.

what i cannot understand is how the government, which we elect to guide and protect us can agree to such a solution.

Christopher Cunningham

Oct 23rd 2008, 13:22

In most countries business establishments pay higher electricity tariffs than domestic units.

J.Borg

Oct 23rd 2008, 13:22

That's what i call dialogue.....if you don't accept these i go ahead jus the same.

What have all the usual PN bloggers have to say about this......or are they happy to pay exhorbitant bills?

carmelo briffa

Oct 23rd 2008, 13:14

Why don't we, as Maltese citizens not get together in front the Prime Mister's Office to protest about these new tariff ? Of course I do not mind if my pension or my wages were high enough to cover these extra expense. Our Salaries and pensions are the lowest of most of the EU members. How about the GWU .Haddiema Maqghdien and all the unions calling a big demonstration so we can show if we are happy or not happy. Wake up people and let's all do something about it.

Alex Borg

Oct 23rd 2008, 13:14

We hope that unions also stand still on the issue that the household consumers pay only for their consumption but not anything else that will go to subsidise the large enterprises' capping..... and also hope that all the families who benefit from social help are all SERIOUSLY audited in order to verify that all of them are REALLY in need.