Tuesday, 28th October 2008 - 14:01CET
Video: Government sticks to tariffs decisions - new assistance for large firms
(Adds video footage of Dr Gatt's comments)
Infrastructure Minister Austin Gatt said this afternoon that the new power tariffs would be introduced retroactively, from October 1, as previously announced.
Speaking at a press conference, he said the government had decided that the power tariffs announced last week would remain unchanged, but the government, in an effort to safeguard jobs, would assist 26 major companies when their bills exceed surcharge capping levels so that their costs would not rise by more than 40 percent.
He said the new tariffs were based on a projection that oil purchase costs over the coming year would be €21 million less than the past 12 months.
The new domestic tariffs would see an increase of between 55c and €1.80 per person per week, the minister said. He added that 122,939 accounts out of a total of 196,676 were expected to benefit from eco-reductions.
In the case of commercial users, the bulk of consumers, 37,000, would see an increase in their costs of some €5.50 per week.
The minister confirmed that the capping system on the surcharge would be gradually phased out over three years. He said the government would allocate just over €5 million to help large firms when their costs increased by over 40 percent of the surcharge threshold.
The minister said the government would also pay Enemalta €7.7million for its social obligations and €8.1 million to subsidise low income households.
He said water tariffs were expected to cost each person an additional outlay of between 83c and €1.19 per week but some non-residential consumers would actually see a decrease in their costs since cross-subsidisation would end.
The new tariffs would be regularly revised according to oil prices.
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Comments
I have another opinion about the drydocks. If the Goverments of the last 20 years had not worked against the drydocks but really worked to make the drydocks viable the country would not have pumped millions down the drain. That is the way the nationalists work - they were happy to let the drydocks go bust so that it will be percived badly by the people and than he will have no problem to cvonvcince pepole that iot would be best to go - and go to whom - lets wait and see who is going to enjoy the benefits. Wouldn't it had been better had the drydocks diversified into other areas and produce even under license environmental electricity generating equpiment.
@ Alex Ellul----I think the w&E bills are illogical and unfair not because of the extra money that we have to fork out but because Dr.Gatt used exactly the same argument Dr.Sant used in 1998.........I wholeheartedly disagreed with Dr.Sant then (and he got the drabbing he deserved) and I wholeheartedly disagree with the same "politika tal-calculator" now !!
Is this a new way of doing consultation ? First decide , then organise a few meetings and then impose what you have decided way back.
All the major Trade unions and organisations are rapresented in the MCESD and thus are representing the whole strata of the population. That's why in this matter ALL of us are going to be united in a single front to protest against this arrogant way of doing politics
Using new terminology of "aid" and "new assistance" instead of subsidies will not change our minds about your incompetence. And that is what makes you shift all your failure onto the taxpayers! We're fed up with this....
I hope PN will not send Paul Borg Olivier to Bondiplus giving out an explanation, he really bugged me!!!
Cheers dude its on me !!
@ John Schembri... John, the Italians, Greeks, Spaniish, Belgians `` DID IT`` on different other issues from ours, but on something which they strongly oppose just the same.. The kind of `Issue` is irrelevant, so long as it is hurting the Local Tax Payer.. Example.. A few days ago, Over 2 million Italians strongly protested against Prim Minister Berlusconi, `To Save Democracy` in their country...
So let us all unite and `sing the same song`..
MCESD should resign unblock
Bye Bye to my vote next time around! Once bitten , twice shy.
So please let us not all stop thinking bout the past. Let us not create a democratic dictator. Let us remember that media today is very powerful and influences people effectively. 25 years in power is simply too much for any government, good as it might be. Something must be terribly wrong.
Many people suffered in the 80`s. My parents as PN supporters suffered as well through multiple injustices but we cannot keep looking at the past for the sake of democracy.
This is like keeping ourselves slaves of that same past.
I don`t know if you work but believe me in the last five years the injustices I have suffered and the violence, not physical but mental is tremendous. I `v seen people being promoted in my department after months of work when i`v been working hard for ten years and with a scientific degree and the promoted with O level standard. I'm talking about a managerial post here(no wonder many government companies are inefficient ). This is not because I`m red which i`m not but simply because I m not a PN hardliner and "tal qalba" There are times where I can`t sleep at night thinking about what i`m going through.
The world has reacted in three ways, namely: politically, economically and technologically, causing the price of crude to finally go on a free slider towards a rationalized price that will eventually settle down to between $20 and $25 within a few months.. Then we will all forget about it all, only to tell it to our children how OPEC blew it twice, in 1973 and 2008. Continued….
In all honesty I believe that this situation would not have been avoided had Dr. Sant been elected a year ago but we need to stop living in a world of ‘what ifs’, maybe things would have been worse !
This government, which professes transparency, should publish a list naming the 26 privileged companies to avoid any doubts and accusations of favouritism. Are they private businesses, NGOs, high volume employers, foreign owned companies, or friends of the government?
Is it one particular sector or are some, say a hotel, being favoured against their competition?
If a family of four manages to reduce 10% from the car journeys, energy and LPG consumption it will reduce the CO² footprint by about 1.2 Tons.
And what I really don't get from Austin Gatt is this, he's gonna cut the subsidies, which are being paid by our own taxes (so there'll be more money to spend, since there aren't many assets left to sell nowadays) but he's still going to subsidize some major companies......
with some brains we could simplify the equation.......
yet another NEW STEALTH TAX!!!! and then Gonzi boasts of cutting down taxes for 3 consecutive years.....yer right!!
and don't give the the international oil crisis crap........a barrel of oil has plummeted to $61!!!
Dr Gonzi, please resign and lets have an election with someone that can be trusted.
With your proposed tariffs, you are putting pressure on all families, and on the employment sector. Come next year, we will see the collapse of the economy, high unemployment, and a downturn in tourism. Don't forget the high prices as firms will pass the higher cost of tariffs to the consumers.
I'm hearing Metallica's Master of Puppets in the background....Do you? Or is that someone playing Highway to Hell by ACDC? One thing's sure....it ain't Stairway to Heaven....*exasperated sigh*
The tariffs were worked out when oil prices were at their highest and notwithstanding a big fall in the price the tariffs have remained the same as originally proposed. In addition the minister stated that the tariffs will be revised depending on the flactuation in the price of oil. So if the price goes up say to 80 dollars we will get another rise in tariffs when these were originally worked out when the price was 140 dollars.
This is the biggest shame on the majority of the maltese who voted for GonziPN. What a betrayal.
this is the social heart of the gonzi/gattopn!
But how is this better?? Aren't ALL the social partners telling the govt. that this desicion is wrong?? So who's being pig-headed now??
.....dear Minister, Dear PM.......... what was bad 10 or six years ago IS STILL BAD TODAY!!! If Sant lost his boxxla, with these bills so did you!!!!!!! If the MLP was downright stupid to stamp its feet and declare to be right when it knew it wasn't so are you!!!!!!
I hope that when the PN gets a major drabbing in the MEP elections we won't have to endure a pathetic charade with Gonzi telling us "....naraw ghalfejn tlifna...........". The answer is here Dr.Gonzi and if you can't see or read it thats not exactly our problem is it!!!!!!!!!!!!
Truly bad PR and timing Mister Gatt!!!!!!!!!!!!
But what about this?? How much better is this than Sant's "Politika tal-calculator"?? How is the government being sensitive to those who can't afford ( and NO I don't mean the ones on the dole and the bloodsuckers who can't bother to do a thing) I'm referring to the hardworking middle class?? How can the government possibly claim to have a social conscience if it did not even bother to draw a Social Impact Assesment?? How on earth does the Govt. expect us to pay through our noses for the financial mismanagement at Enemalta??
When the prices of Oil went up we were more than understanding but now the price has gone down so there is no apparent reason any more
meetings the Government.? Haven't they realised that they were being taken for a ride all along ?
You are requested to grin and bear it, (moaning is not an option).The wiser and visionary August one, knows better than you or any bunch of time wasters at MCSED and more so at that formality called parliament! Suggesting an alternative route would be preposterous of course, alternatives are not allowed in Gattville! Anyway Happy Gattmas to you all!
Hope that demonstrations will be organized so that Dr Gonzi will not introduce these tarrifs
If you want to strike I will join in because I don't have any more leave and can afford one or two days unpaid leave!
Yes it will be hard not to switch on the AC , but I won't be paying other people's bills.
If I were the PM I would only cap those companies who would keep their workers and install solar water heaters , PV panels or wind generators.
Well it is early for an election but the same will happen next time round. People will forget all about this and get blind a few months just before the election date. Once in government ejja naghmlu herba!. You can see even people on TV clapping to speeches.
We'll never learn. I did though.
@maria busuttil
Well useless to complain now. I am not even a bit sorry that your life is getting miserable. Nothing personal but don't expect me to pay your bills.
TO ONE AND ALL...
Guys, i think that it is abolutely HOPELESS and USELESS to try to reason with dignity the DISASTROUS IMPACT on our daily living, this MONSTROUS increase in our water and electricity bills are going to have on ALL of us....
Being a Household, a small Familly Buisness, Big Companies, Hotels, Entertainment Places of all sorts, etc.. etc.. Everybody is going to GET IT....
This kind of treatmemt, is nothing more than SHEER ARROGANCE PER `ECCELLANCE` from the whole of the GonziPN Government...........
Therefore the only way out on this kind of arrogance, is to UNITE AS ONE WHOLE FORCE, and organize an organized and peacefull General Strike / Protest at Valletta or ta Qali...
The Italians did it... The Greeks did it... The Spanish did it... The Belgians did it... etc.. etc..
EVEYBODY ELSE CAN DO IT....... SO WHY NOT THE `POVRI` MALTESE..... !!!!????!!!!???
GHALHEKK..... EJJEW MILL-PAROLI NAGHDDU GHALL- AZZJONI... GHAX SER IBAGHTI KULLHADD.. ZGUR SE JONQSU HAFNA FLUS MILL-IDEJN U DAN IKUN SINTOMU IKRAH HAFNA BIEX INKUNU NISTGHU INKOMPLU NSOSTNU L-EKONIOMIJJA TAGHNA IN-GENERALI GHAX IL-POPLU SE JONFOQ HAFNA INQAS, U SE JKOLLNA ZIEDA ZGUR TA NIES LI SE JAQGHU TAHT IL-LINJA TAL-FAQAR... GHARUKAZA.....!!!!!!!!!
Your first statement is the ruin of this country. What do you mean by saying that I was an will always be blue? Politics is no football team. In my opinion not the tarrifs nor any other issue is the ultimate problem but the real problem is people sticking to a party no matter what. It is not worth it, and this also goes to those who are given favors politically. We should not be beggars but people who find jobs because there are jobs available. How nice to get promoted through one`s own capabilities rather than through a minister`s power.
It seems that Enemalta's inefficiencies will be catered for now! Malta Shipyards over and over again!
Flimkien kollox possibbli!
If you are interested in reducing your consumption consider replacing your domestic appliances with new energy efficient models. You could also look into double glazing/insulation to reducing heating bills in Winter, and blinds/shutters to keep out the heat in Summer. You could also save a few units a year by not keeping appliances (such as TVs and monitors) on standby and unplugging mobile phone chargers when not in use.
Remember it is your responsibility to reduce your carbon footprint - for the planet’s sake as well as for your pocket.
Cost of electricity per annum@ old rates plus 95% SG:
Family of two (excluding the meter rent) 3200 units = 377.11 Euro (cost per unit 0.12 Euro)
Cost of electricity per annum @ new rates:
Assuming that the Eco reduction is equal to 20% reduction on the first 1000units & 10% on the next 500 units.
Family of two (excluding the meter rent) 3200 units = 529.6 Euro (cost per unit 0.1655 Euro)
Less Eco reduction if it applies as above ...................... 40.85 Euro
Net unit cost................................................................. 488.75 Euro (cost per unit 0.1527 Euro)
Difference in consumption cost between old & new tariffs:.....111.64 Euro
Equivalent to an extra 2.147 Euro per week or an increase of 30%
The consumption of 3200 units is as follows:
Fridge.................77.65
W. Machine.......586.61
Lighting.............255.3
TV......................894.1
W. Heater..........657
A.C unit.............208.0
Computer..........438.0
Miscellaneous...73.0
Total...............3189 Units
I will be eternal grateful if someone will enlighten me how to reduce the above consumption unless the power is used on alternate days!
democracy is over and done with ........we are being governed by a bunch of self-appointed dictators and demigods
For your information the oil from 140$ went down to 60$ . do you know that????? So why are we still increasing prices up? They should go down! Simple proportion my dear friend.
The government did listen to various groups, conceded in certain areas, maintained its protection for the 30,000 worst-off families, and in the end had to take an unpopular but realistic decision.
Nobody is happy to be paying higher rates but somehow many people believe that we are unaffected by the realities of the global economy. These people also believe that you and I should pay higher income tax to keep their illusion alive.
@Mark Zerafa. If in 1997 went the way the Labour Government wanted, we won't be having this problem now. But for political reasons, the PN, who knew about the problems, went against it, and smelled that something was not right in the Labour camp. And sided with Mintoff to bring down the MLP government. Now that the problem has come back to face us when the world economy is in a slowdown. At least 1997, we had the strength financially to combat the new tariffs if they passed, but now...... Won't even try to think about it!!!
LETS protest and stop the government from rolling over the people. IF we don't do something ,than sorry for the Maltese people we are years behind our friends in Europe. Lets Act NOW and forget which party you favour Don't Be Stupid open your Minds.
The problem is now compounded by the oil price hikes, however this will settle down as it is wont to do, and as happened after the 1973 oil crisis. The pricer of oil s already down to $63 and OPEC is in panic. In the US petrol is already down to $2.6 per US gallon, however one must note that in the US petrol is not taxes while in Europe petrol (and diesel) are heavily taxed and is a very good source of revenue to the governments.
The problems are not as big as they seem, time will tell. The real problem is the global economic crunch, but it will settle down in a year or two, while the rogue banks and regulators would have learned their lessons.
This is a vicious cycle that repeats itself over and over again. It's what happens when you give the same group of people the mandate to govern for a quarter of a century.
Charles Dickens, A Tale of Two Cities
English novelist (1812 - 1870)
With fuel prices enjoying a sharp dip in prices of unknown duration this is the best time for tariff adjustments.
We however expect full information information on costings for fuel supply, electricity generation , distribution losses and overheads to ensure that we are being charged fair tariffs and not cross-subsidising some other deficit or government revenue generation exercise.
Mhux talli gew l-energy savers anzi vera kollox opposite qed isir hawn, and then after 4 yrs naqalaw fuq rasna jkollna xi pre-election budget inroxxu l-bzar fl-ghajnejn. Do not try to put Joseph into this situation asking for other ideas Gonzi was elected for his promises and not Joseph!
Hope the greatest protest Malta has ever seen will be organized!!
And another question is Enemalta buying oil now? since price is getting lower each day. Umbad il hedging kienet imhatra !!! u le leeee
And why should I, a middle-class earner, have to subsidise the energy bills of the industrialists who make a profit out of this energy?
Of course, all of a sudden, we are promised the possibility of "giant oil strikes". I don't want hope for a less bleak future.. I need more money in my pocket now! What a brilliant way to handle a global recession!
The UK government, for instance, is prepared to increase its deficit in order to increase public spending. But we Maltese know-it-alls have instead thought of the best way to decrease the spending power of the consumer.
MLP did it in 1997. Austin Gatt did it in 2008. I guess I need not even bother to throw a paper in a box in five year's time. There is no real choice here.
If the new tariffs would be regularly revised according to oil prices so IMMEDIATELY tariffs should go down like the oil price did.Someone please enlighten me because i'm lost.
This government has no future, lets go to the streets now!
We are going to pay not because of the oil price, but because of the inefficiencies running in Enemalta. This shows the irresponsibility of goverment. I cannot imagine how those responsible for such inefficiencies (including the government and his ministries) will go to sleep peacefully every night. But this government will continue to destroy families, when he does not agree with divorce. Economy, SME's, Pensioners, Families, Young couples will all be destroyed.
Listen to alternative but 1st decision stands!!!!!!! My way only.
Domestic consumers will see an increase of about €3 per person per week.
Are we going to get a wage and salary increase to cover these tariffs?
Are pensioners going to be compensated?
"Brown warning over energy bills ... The government wants to see bills come down soon ...
Gordon Brown has urged energy firms to reduce petrol prices and household fuel bills to reflect the sharp fall in global oil prices in recent weeks."
In Malta, the taxpayer will be subsidising industry. That's a lesson in distribution of wealth theory!
Minister Gatt said THE NEW TARIFFS WOULD BE REGUJARLY REVISED ACCORDING TO OIL PRICES. Correct me if I'm wrong, but didn't he tell us that ones before???????????????????????
1. Please just tell us how much we have to pay per unit and what the eco level is. We are already a month into the new but unknown price of Electricity and Water for which we have no idea what the cost is.
2. Please do not allow estimate bills to be issued mid way between a change in tariffs. Tariffs should only be changed at the end of a billing period which has not been estimated but the meter actually read and official readings recorded.
In the case of 2. above. If the suppler cannot come and read the meter then open up a website in which users can send in their official readings as at the 1st of each month which they can use as a billing process between each supplier visit to read the meter. This is only fair - pay for what you use at the quoted price, not guesstimated readings built on two different tariffs.