GRTU welcomes new electricity rates structure, but not the tariffs

The GRTU this evening welcomed the structure on which the revision of the electricity tariffs is based, but not the proposed tariffs.

"The major claim of the GRTU in its submissions to the MRA was that the previous tariffs structure discriminated against small and medium enterprises. That claim has now been met according to the new tariffs proposed by Enemalta," the GRTU said.

"The framework on which the proposed new tariff regime is based no longer carries a different tariff structure, one for selected large enterprises and one for all enterprises with a gross discrimination against smaller businesses.

"The new proposed tariff structure also reduces further the tariffs for heavy consumers in the commercial and catering sectors. The new proposed tariff structure reduces the tariffs applicable to SMEs by the full amount that was the basis of the complaint of GRTU. The new proposed tariffs represent for GRTU members a reduction of around 29% to 21%. This reduction is expected to come into force from the effective date of the new tariff structure."

The GRTU said it now expected the MRA to approve a tariff structure which would reflect the losses suffered by SMEs when they had to cover the consumption of the selected larger enterprises that benefited from a reduced tariff.

"GRTU is not satisfied that the new tariffs proposed by Enemalta correspond faithfully to the prices of fuel and gas oil reigning in the market since September 2008. GRTU expects the Public Regulator, MRA, to publish its independent fuel market analysis to the satisfaction of residential and non-residential Enemalta consumers. GRTU also expects MRA to approve a tariff structure that reflects the economic impact on enterprises within the framework of the current adverse economic situation," the GRTU said.