The cost of gas still makes it a more viable option than electricity for household use despite the 37 per cent increase on a regular gas cylinder.

A comparative exercise carried out by The Times shows that consuming the equivalent in gas of 2,000 kWh (the official average consumption of a single-person household) of electricity would cost €89 while that same energy in electricity costs €238 at current prices.

So it seems gas cookers, heaters and water heaters are still a better option than their electric cousins despite the hike.

However, while this typical household benefitted from a decrease of €84 in electricity rates, the upward hike in gas prices means an increase of €24.

The comparative exercise was carried out on the revised electricity prices announced by Enemalta, and which still have to be approved by the Malta Resources Authority, and the new cost of a 12 kg gas cylinder normally used in households that went up from €5.40 to €7.40.

According to the new electricity tariffs the consumption of 2,000 kWh of electricity costs €238.

Since electricity tariffs vary according to consumption, 2,000 kWh represents the lowest band at the cheapest rate of 11c9 per kilowatt hour. With the new electricity rates consumers would save €84 over the previous tariffs.

Meanwhile, 12 regular cylinders, producing 2,000 kWh, would cost €89.

Although substantially lower than the equivalent cost of electricity, the amount represents a price hike of €24 over what gas used to cost.

Enemalta introduced substantially higher prices for all of its gas products as of yesterday, a move that was criticised by the Chamber for Small and Medium Enterprises - GRTU.

GRTU director general and Nationalist MEP hopeful Vince Farrugia said that the "timing of the increase was very bad" and Enemalta should have waited for consumers to start benefitting from the reduced electricity tariffs.

He lauded the government for heeding the GRTU's advice and not removing the subsidy at one go, which would have seen the price of gas cylinders almost double.

However, the GRTU hit out at the MRA for not insisting on an economic impact assessment of the gas increases. Mr Far-rugia said the MRA was "once again" conspicuous by its "absence".

"Enemalta is a state corporation and the regulator should be more conscious of what consumers and business users can afford to pay," he said.

The cost of 2,000kWh

Electricity
€238
11c9 per kWh
Rate for first 2,000kWh

Gas
€89
4c5 per kWh
Rate for 12kg cylinder that costs €7.40 (12kg of LPG gas is equivalent to 165.6 kWh)

ksansone@timesofmalta.com

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