Model 'correct' but data accuracy was not verified
Deloitte calls for detailed MRA review
An independent study has found that the model used in the drawing up of the new energy bills was correct but when it was compiled the verification of the data's accuracy had still not been verified.
The exercise was carried out by auditing company Deloitte on behalf of the Malta Resources Authority. It was concluded on January 6 and published yesterday.
The MRA was not involved at all in the process when the new energy bills were being worked out and it only came into the picture later to verify the model and the methodology used.
The study looked into the tariff structure compiled on behalf of the government by auditing company KPMG.
The Deloitte report concludes that the model and methodologies used in the drawing up of the new rates were correct. But, when the report was issued, the accuracy of the data used to compile the model had still not been verified and tested. In fact, it recommends that MRA now test this data and the resulting tariff structure.
Deloitte said that "the key assumptions applied in the model accurately tied in with the assumptions laid out in the KPMG reports as amended by other official announcements and appeared reasonable for the purpose of the exercise undertaken".
Deloitte recommended that the MRA undertakes a detailed review of the most recent financial statements of Enemalta Corporation in order to ensure that the costs included in the model accurately reflected the current operating cost base.
Deloitte did not go into the workings of the eco reduction and how the 1,750 unit threshold was established. It carried out its exercise based on Enemalta's 2006, 2007 and 2008 unaudited accounts.
In fact, the report does not seem to answer any of the queries of the 11 unions questioning the utility tariffs. The unions' questions have to do primarily with whether the eco contribution threshold is based on a realistic average of people's consumption.