Revision in energy bills seems likely

A revision of water and electricity tariffs should mean households with low consumption pay only slightly more the current 95 per cent surcharge than, following a marathon meeting between the government and unions yesterday.

Both sides kept their cards close to their chest after agreeing not to reveal details to the media ahead of tomorrow, when the government is expected to bring closure to the long-drawn saga with a final package.

However, sources close to the discussions said the package includes the introduction of a progressive tariff system through which the more you consume, the more each electricity unit will cost. This could lead to higher bills than envisaged in some cases.

Moreover, the government has agreed to raise the threshold for the reduced rate from 1,500 units to 1,750 units. According to unions' estimates, this means that bills of more penny-wise consumers will be marginally higher than they have been since the 95 per cent surcharge came into force in July.

In a nine point set of requests made last Tuesday, unions had asked for the ceiling to be raised to 1,800 units. They also asked for the rise on the electricity meter charges to be ditched and for the new bills to be implemented from January, rather than retroactively from October.

The latter request appears to have been refused by the government, which was adamant from the start on having the new bills from October. However, the new meter charges will be introduced in January.

In reality, the bills should also decrease in the coming months as a result of falling oil prices. That principle remains unchanged from the previously announced regime.

The changes followed a marathon meeting between the main unions and Prime Minister Lawrence Gonzi - which started at 11 a.m. and dragged on until around 6 p.m with a few hours' break in between. During this time, the government consulted its experts on some queries raised by the unions.

Curiously, Infrastructure Minister Austin Gatt, who had been fronting the regime change so far, was not present for the negotiations.

In a brief statement at the end of the meeting, Dr Gonzi appeared confident that the final document to be presented tomorrow will conclude the dispute over the tariffs.

Similarly, union leaders were upbeat on leaving the talks. Medical Association of Malta president Martin Balzan, who yesterday represented the Confederation of Maltese Trade Unions, said: "We have a good package".

Similarly, General Workers' Union general secretary Tony Zarb and his counterpart from the Union Haddiema Maghqudin Gejtu Vella were positive about the "very productive" talks.

Yesterday's mood was in stark contrast with the confrontation that spurred a historic show of unity among unions when they protested together against the new tariff regime on November 14.

After that protest, the government made it known it was willing to "tweak" the new tariffs which were presented as final by Dr Gatt three weeks earlier.