Big consumers to make the biggest savings

Industry's highest energy consumers will witness a huge reduction in their electricity bills under new proposals, being one up on smaller businesses that have to fork out more money.

Businesses that consume over 10 million units of electricity annually will save a staggering €250,000 while those using between five and 10 million units will save just under €58,000. This comes at a cost to smaller businesses, which will see a hike in their bills, with some asked to pay up to €5,800 over and above the already high bills. The Chamber for Small and Medium Enterprises - GRTU felt this was unacceptable and stressed it will not take this lying down. In fact, yesterday, it directed members not to pay for other companies' subsidies.

"We have said from the start that the burden on small businesses is exaggerated and infringes EU regulations," director general Vince Farrugia said, adding that the GRTU will be helping its members determine which part of their bill was tantamount to cross-subsidisation.

On Thursday, the government unveiled its latest proposals that see the removal of the €50,000 capping for big industry staggered over three years, with small businesses shouldering much of the burden.

Although Infrastructure Minister Austin Gatt argued that the bills of about 36,000 SMEs will only go up by €5.50, the GRTU argued this figure was incorrect. It said bills will go up by an average of €9.03 a week.

Mr Farrugia also argued that the €305 million Enemalta recovery bill, which had already been lowered by €60 million, could easily be cut down to €265 million by eliminating the company's "comfort zones".

"Irrespective of the amount, we are not going to pay for other people's consumption," he stressed.

Mr Farrugia said consultation between the government and social partners was not over, despite what Dr Gatt said.

Following Thursday's meeting of the Malta Council for Economic and Social Development, Dr Gatt said there was nothing to comment about and the government would implement what was presented. He made the statement when the social partners asked for another meeting so they could give their feedback.

However, Parliamentary Secretary Chris Said insisted yesterday the government's position was not yet final. A spokesman for the Office of the Prime Minister would not say whether the proposals would be discussed at Cabinet level or when.

"As a matter of policy the OPM does not comment about discussions that take place in Cabinet, except after decisions are made. However, for the record, one must point out that the MCESD met three times to discuss the government's proposals," the spokesman said.

"All member organisations, bar one, made detailed written submissions, and all organisations intervened several times during the meetings to explain their views.

"Several direct meetings between the ministers and the MCESD, which asked for them, were held over this consultation period," the spokesman said, adding that the government's revised proposals were based on consultations with the MCESD.