Updated: Power tariffs may rise again
Malta will inevitably have to look at its power tariffs again as oil prices fluctuate, Infrastructure Minister Austin Gatt said today.
He was speaking at the opening of an IBM workshop entitled "Empowering the Smartgrid: What next in Malta?"
During the workshop Dr Gatt said the creation of the smart grid and the introduction of smart meters would, for the first time, put consumers fully in control of their consumption. This technology also enabled the utility providers to provide intelligent night and day tariffs, issue actual bills (not estimates), issue bonuses for people paying on time, identify electricity patterns and design payment plans.
The introduction of the new technology would also end inaccurate meter reading. Utilities currently reported 13% of technology loses, but thanks to this new technology this rate would go down to 4%.
"If this is achieved in three to four years we will have achieved payback period of this €70 million," Dr Gatt said.
He said that as from next January a new accounting system would be functioning and customers (those with smart meters and those without) would start receiving new bills with an informative format.
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Jonathan Scerri
Oct 31st 2009, 19:41
@ J.Camilleri : Semmejt biss li bellawlek dak iz-zmien, is -super 1. Ghax ma komplejtix il-frazi u mhux semmejt dak li jaqbel lilek. Nista nifhem nies bhalek li lill Eddie ma jnizzluhx ghax minn ghandu tkaxkirit biss rajtu. IL-MLP minhabba nies bhalek baqghaw ghal kwazi 30 sena TELLIEFA ghax min jismakom titkellmu zgur li tfakkruh id-dnubiet tal-passat. Ahjar titkellem fuq il-prezent ghax hemm hafna argumenti favur tieghek, imma l-passat ahjar thallih ghax hemm hlief TELFIET, KAWLATI (SISA), ELEZZJONIJIET BIKRIJA, GLIED u TGHAJJIR FIL-PARLAMENT ma kellkomx fil-partit.
@ S.DEGABRIELE :When he said MONEY NO PROBLEM, he meant it. In fact after the 1987 election, from a country with no infrastructure & with the unemployment in it's highest peak & credibility at the lowest point, EDDIE created only jobs(UNFORTUNATELY NOT LIKE TODAY'S ADMINISTRATION). If you want me to name you all the major projects he had done, I'll answer you next time. One thing on everything, he gave us the keys to join the EU.
One last thing, why the PN Media is asking for a Joseph Muscat apology for the (not-so-happy)statements made by A Sant& M Camilleri on TV. Can anyone explain cause I can't understand why?
Albert Gauci Cunningham
Oct 31st 2009, 19:23
@ Joseph E Briffa---"And once subsidies are a thing of the past, the consumer has to bear the cost, independently of who is in government."
Oh are they?? I suggest you re-read the PN electoral manifesto (assuming you read it before blindly voting PN) in which you will find that utilities will continue to be subsidized as they (the subsidies) are part of the "social-consience" which the PN ,like any other government, should have. And lest you forget this same manifesto was drawn when Dr.Gonzi was already seeing "black clouds on the horizon". Whether subsidies are good for the economy or not( well the PN did keep them for 20 years so they cant be that bad!!!!) can we at least agree on the fact that considering the above facts the PN took the people who voted for it for a long camel ride!??!
joanna farrugia
Oct 31st 2009, 15:03
@ maryann borg + all pn apologists stop mentioning jospeh what he will do in this matter.its your dear gonzipn in the gov and he must answer for all this disaster plus everything else.the oppostion told him many proposals in this matter but he laughed them all of so stop trying to shift pn dirty jobs on pl.
J.Camilleri
Oct 31st 2009, 14:39
Halluhom ha jgholew il-prezzijiet ! Do you remember that phrase Ja Gahan Malti? minjaf kemm capcaptulu bil-qalb.
c galea
Oct 31st 2009, 13:42
election time is coming and so should ejection time of the present govt. be coming, these rises seem unfair and unreasoable . the introduction of the new technology should have been inmtroduced to recoup any monies that may have been part of the problem , and or cheating if indeed???????? so why the rise? could it be miscalculations and misleading comments by the maltese leaders??????????
C. Bartolo
Oct 31st 2009, 11:16
The funniest thing about all of this is that prior to March 2008 general elections we were promised a solution by the then PN government for the energy costs. Any idea what it was?? The sending of 5 free light bulbs for two years!!! Yet, the people still opted for that kind of goverment instead of a serious one that would have thought before-hand instead of trying to mend the fence once all the rabbits have escaped.
The country should have engaged in forward contracts, whereby the oil would have been bought at the cheaper prices. However, the finance minister was abroad watching a football match, the resources minister was showing off and the PM was trying to solve his internal problems and stop the leakages from the aquarium (PN Headquarters).
And what about the workers?? They get to foot the bill, and come next general election we will have people like Mary Ann Borg (and other blue eyed rabbits) in these blogs telling us that we should elect another PN administration. If you want to continue hearing such absuridities from ministers; follow her advice...
Otherwise, a better alternative is available; one that will leave more money in your pockets...
Edward curmi
Oct 31st 2009, 10:08
Sur Gatt why there was the rise in electricity bills this year? for what? To compensate for enemalta"s inefficiency?
Muscat. Pat
Oct 31st 2009, 08:37
In a country like Malta Dr Gonzi is identified as the CEO, the manager of "Azienda Malta". Now this leader has mis-managed many issues; the biggest debt in Malta's history, the biggest deficit in Malta's history, the expensive electricity, water, gas and fuel ever; the " immigration burden sharing issues" the long queues for medical operations....too long to list.. And yet, whilst if he was employed with the private sector he would have been sacked, today we are still saddled with a "leader" that sees yesterday as the apex of his achievments; in the meantime Malta and its energy sector is slowly plunging into the shadows.
Todays standard of living was weaved decades ago, I wonder what future beholds for our kids, with Dr Gonzi's rampant mismanagement!
S.DEGABRIELE
Oct 30th 2009, 13:56
TO ALL. NEVER FORGET THAT UNDER PN GOVERMENT,S ESPECIALY UNDER EDDIE MONEY WAS NO PROBLEM/??????
J.BORG
Oct 30th 2009, 13:11
MALTA OIL EXPLORATION
On a more proactive approach, what is happening regarding oil exploration in Maltese waters? Are we wasting money looking for oil or is there real potential? I have known Malta to be loooking for oil since I was a toddler...and this means we have beeing doing this for over 30 years. Would be good if our journalists and MPs make pressure on Government to get details and if necessary strong action taken on OIL exploration...**IF** thre is real potential... Perhaps, one day our energy bills will be a bit more stable, but not necessarily cheaper if Malta strikes oil. Can experts please tell us re real oil potential in Maltese waters?
Lino DeBono
Oct 30th 2009, 12:54
Sir,
Malta used to have the system of forward buying commodities such as oil.
May I ask if Malta did do so when oil was around 40 dollars per barrel?
Lino DeBono
e. caruana
Oct 30th 2009, 12:31
its really nice that we might have to pay higher power tariffs. could this be an excuse for the new cars some of the enemalta employees just had for both work and personnal use, as the cars are kept over the weekends and made use of, and we have to pay higher power tariffs rates. hope they do not have also free petrol for their cars during the weekends???????
Neville Debattista
Oct 30th 2009, 11:52
@ Joanna Ripard. Another penalty kick given against the most lucky and ever smiling maltese workers. What next ?
I. Bonnici
Oct 30th 2009, 10:20
Mhux ahjar ghamiltu naqa 'forward-buying' tad-dollaru amerikan meta kien 1.5 mal €uro? Kien jaghmel tajjeb ghaz zieda tal-prezz taz-zejt!!! Pajjiz passiv...
S. Calleja
Oct 30th 2009, 10:08
"Dr Gatt said...the introduction of smart meters would...enabled the utility providers...to issue actual bills"
It is already possible for users to obtain their actual consumption by using one of the available utility calculation software. A quick search for "utility calculator malta" provides a number of options.
Galea. L
Oct 30th 2009, 09:38
J Farrugia
How low can you go to defend your indefensible and incompetent Gonzipn Farrugia?
Have you and your darling Gonzipn ever heard of hedging?
How do you expect Dr Muscat to guarantee prices for years when your Gonzipn doesn't even want to guarantee prices for a month?
Joseph E Briffa
Yes Joseph, the price can be controlled by hedging oil when the price goes down but it seems that Gonzipn and pn apologists do not know about this out-of-this-world system.
Mary Ann Borg
Are you now denying that your Eddie Fenech Adami and Gonzipn have put Malta into more than €4,000,000,000 DEBT apart from disposing of all the entities that used to put money into Malta's coffer?
Marco Cremona
Oct 30th 2009, 09:26
Minister Gatt should inform the public that water tariffs will increase three-fold in the next couple of years - and this irrespective of the price of oil.
- sewerage tariff to be introduced in 2010 (requirement of the EU Water Framework Directive).
- groundwater will finish in 15 - 20 years time. Groundwater still makes up for half our potable water supply. As a result output from desalination will have to increase to make up for the loss of supply from our aquifers.
- WSC (as a heavy consumer) benefits from subsidised electricity tariffs. The price of RO water would double if WSC were to pay the true cost of production.
- EU Water Directive stipulates the need to include a 'resource cost' in the water tariffs. This is the cost of depleting our aquifers.
I find it incredible that NOBODY is talking about these issues. Brace yourselves for some hard times.... I know what I'm talking about.
R.BORG
Oct 30th 2009, 08:51
Why didn't Enemalta and Dr Gatt not hedge when the price of crude was at its lowest a few months ago? If this had been done, we would not be in this position and the rate for households could be kept stabilised! Or worse, hedging had been done and kept a secret so that govt and Enemalta could make some extra millions from us poor souls and then the bully could come out and boast that he managed to lower the deficit?
Roderick Micallef
Oct 30th 2009, 08:47
See Saw, not in tariffs dear minister because the tariffs are only going in one direction, up into the sky!. The only see saw I would like to see is in the governance of this country, personally I've had enough of hearing everything that is happening is only because of the recession (which is over now any ways).
The prices of oil WILL go up, and will once again reach 140$ or 150$ a barrel, that is inevitable and it's only a question of when will it happen? However that is only a fraction of the whole picture we should be seeing, instead, the only suggestion we can come up with is 'we inevitable have to look at the prices again'
But what about making Enemalta more efficient? what about REAL incentives for green energy? or getting connected to the European grid? the purchasing scandal of Delimara power station?
The only proper incentive are the smart meters but most probably they will only be introduced to gather as much revenue as possible and customer will lack the facilities/applications to use the meters for their own benefits. We will have to wait to see that hopefully soon!
J Farrugia
Oct 30th 2009, 08:34
@ Malcolm - Malta imports everything. It has no raw materials. And so YES, inflation is perforce high since we are just a speck in an ocean of countries.
J Farrugia
Oct 30th 2009, 08:32
@ Roderick - stop playing the fool. Everyone knows that oil prices went down during the financial crisis, and now that the economy is slowly moving up, oil is once more becoming expensive. Changing managers is not an option for the time being, since even your beloved one has gone on record stating that he doesn't have an answer to this phenomenon and he cant even guarantee that he will bring oil prices down. So keep to your trade.
joyce aquilina
Oct 30th 2009, 08:15
thankyou sur Austin Gatt
Malcolm Schembri
Oct 30th 2009, 07:51
This is why our inflation is so high compared to the rest of Europe.
Galea. L
Oct 30th 2009, 07:34
"Utilities currently reported 13% of technology loses, but thanks to this new technology this rate would go down to 4%."
I suggest that for technology losses read "incompetence and leakages and system losses" such as power loss in cables, incompetent management and water leakages never repaired. Will all these be made good through meters which read a little bit more?
Joseph E Briffa
Oct 30th 2009, 05:37
The comments of some bloggers are indeed mind boggling............what has the PN or Labour to do with the price of oil? Is either of them able to control the price of crude? The cost of production of energy is not determined by politicians, they only sanction or refute what the cost accountants tell them. It's obvious that if the price of crude has doubled, the cost of production goes up. If say the weighting of oil in the cost of production is 50, a doubling of the price of crude means an increase of 50% in production costs. If one factors in the strenghtening of the Euro against the dollar (1.33 to 1.5) the increase in the tariff works out at about 30%. And once subsidies are a thing of the past, the consumer has to bear the cost, independently of who is in government.
charles zammit
Oct 29th 2009, 23:02
nice sugar coated words which will again increase the hardship that people are suffering due to the already existing exorbitant utility bills. it goes on to show that this is a heartless government without any social soul.
joseph camilleri
Oct 29th 2009, 22:48
Why all this worrying?
According to the minister the 13% losses will go down to 4%
So that should be a reduction of 9% in the bill!
Shall we believe? LOL
P. Schembri
Oct 29th 2009, 21:43
@M. A. Borg. By a quirk of Nature, the PN found itself again in Government. Now it has to solve the problems which itself has created. Pity that we have to suffer again. At the rate the PN is going at the country's finances, what do you think Joseph's alternative would be? It's like we're back in 1971. History is repeating itself.
James Grech
Oct 29th 2009, 21:43
@Mary Ann Borg
'PN left Malta's financies in shambles' I totally agree with this quote Mary, well said.
In fact it is the same PN that has already started 'to increase this, increase that, cut down on this and cut down on that'.
Joe Vella
Oct 29th 2009, 21:43
@ C. Borg
Ever crossed your mind that the owner of the car in question could belong to a subcontractor under contract to do exclusive work for Enemalta? Thus why the car have Enemalta emblem painted on it.
Guess not, eh!!!. Leave it to the Gloom and Doom crowd to shoot first then aim.
Manuel Micallef
Oct 29th 2009, 21:38
@ Mary Ann Borg
you are "assuming" and "prediciting" how bad an LP administration will be, and not even seeing what is happening right now.
That is lack of logic and just a big blue lens in front of your eyesight..... and that is the problem with this country ..... peopel vote not based on logic and facts, but based on the lens screening their view..... whether Red adn Blue.
Mary Ann Borg
Oct 29th 2009, 21:24
'I just don't understand how anyone with a one gram of logic can continue to support this government.'
You're right, we will all now start supporting Inhobbkom Joseph because we all trust him to send us cash in our letter box instead of W&E bills. The first thing that Labour will do if ever elected to power is to repeat the same battle-cry 'PN left Malta's financies in shambles so we have to increase this, increase that, cut down on this and cut down on that' Same old tactic used by Mintoff, Dottor Sant and no doubt will be followed by Joseph. Hallina siehbi.
Jonathan Scerri
Oct 29th 2009, 21:03
I totally agree with Alex Debono, the things happening in these periods would have never happened under Eddie Fenech Adami.
Although that Eddie was/is unique & no one will ever get close to his achievements here in Malta (you can't be THE EUROPEAN OF THE YEAR without deserving it or there's someone bright around saying that he fooled them too to win it !!), I think that the PN has passed from the WINNING era to opposite one. If someone take in consideration the results of the last 2 years, the PN has achieved 2 all-time records. These are the smallest victory in a General Election & the biggest defeat in history. And the real problem it seems that the PN administration are not caring of all these signs (or like the italians' say : SE NE FREGANO).
Who knows, maybe they are hoping that once the General Election is held, all the 'normal' PN & anti-PL voters will forget the hard time passed in the last 2 years & will go to vote for them as usual. But this time, I believe they will be proven wrong.
Joe Busuttil
Oct 29th 2009, 20:52
Guess who the scapegaot will be when the PN loose the next election? No prizes for guessing.
Manuel Micallef
Oct 29th 2009, 20:47
Blaming the enemalta employees is really short sighted and worng.
Did PN not promise about 15 to 20 years ago that Delimara powerstation (supposedly more efficient) would replace Marsa? Did this happen? Did anyone took responsability for it?
What happens to 1000s of promises of wind farm? and linking the energy grid to Italy?
One thing is for sure - whatever incompetence there is on the government side, teh Maltese has to fork out the money!!!
I just don't understand how anyone with a one gram of logic can continue to support this government.
C Borg
Oct 29th 2009, 19:33
@ C Vella and J Vella
I tend to agree completely with what C Vella has stated, what was that car doing queing up to go to gozo on the eve of a public holiday for example, the car passengers were clearly a young family. Or else that car at the beach on a regular basis?
All these cars were clearly ENE cars and believe that this is only the tip of the iceberg. Enemalta is a wholly publicly owned company and the Maltese citizens have all the right to ask.
Josette Balzan
Oct 29th 2009, 19:12
It seems like Dr Austin Gatt has taken it upon himself to sungle-handedly (well, almost) bring down the Nationalist Government. How else could one explain his declaration that "Malta has to look again at its power tariffs". The people will NOT accept a further increase, Dr Gonzi and Dr Gatt. Mark my words.
M Saliba
Oct 29th 2009, 19:11
The smart meter may end up very smart.
Will the account be prepaid?
Will the supply stop if you not pay beforehand?.
Michael Zammit
Oct 29th 2009, 19:08
We are all fools, every little thing that happens everything goes up. It is true that the oil is going up, but oil prices that are shown are in dollars and the dollar is getting weaker while the oil price is going up. If you convert the prices into euro, I dont think the price of oil is rising as they say.
Adrian Cachia
Oct 29th 2009, 18:57
Here we go again!!!
E J Formosa
Oct 29th 2009, 18:56
"Malta has to look again at its power tariffs" - Gatt
"Gatt has to look again at his policy of putting the rates up WITHOUT reading the meters"
When rates shot up in Oct'08, I had 2 units of water and 65 units of electricity charges at the new rates. I can prove it, cos I keep record of the monthly meter readings! And please don't tell me that the new meters will solve that, cos I go on facts not BLA BLA BLA.
A. Mamo
Oct 29th 2009, 18:47
'Malta will inevitably have to look at its power tariffs again'. And the maltese citizen will inevitably have to forge from his pocket more money to balance the government's inefficiencies.
Joe Vella
Oct 29th 2009, 18:42
@ C. Vella
I do not think that Enemalta employees job is 9 to 5. I am sure that employees having access to Enemalta's cars have to log their trips and distance covered as well. To make a blatant statement like you did that Enemalta's employees are abusing Employers assets is irresponsible.
Your statement amounts to accusing Enemalta's employees with abuse and fraudulent behavior, and should be unconditionally retracted by you at once along with an apology to Enemalta's employees
P.Cassar
Oct 29th 2009, 18:39
All Minister Gatt means is PREPARE FOR HIGHER BILLS AGAIN.
AUDITED ACCOUNTS NOT YET PLEASE.
MRA ( supposedely to protect consumer) LONG DORMANT UNLESS PRODED BY GOVT. FOR SUPPORT
Alex Debono
Oct 29th 2009, 18:37
Off Course....then the year before election the price of W&E will go down again...so that we gain votes... I am sorry to say but this game will not be good for our party in the next election...Some people are realy suffering out there... and stnadard of living is getting worse. Spending power of middle class is decreasing.... so shops and outlets will have a double effect on them, less sales, and higher costs of W&E... This will ruin our country...This thing would not have happend under Dr, Fenech Adami.
C Gatt
Oct 29th 2009, 18:36
Talk about Orwellian overtones. When Dr Gatt says the introduction of smart meters would, for the first time, put consumers fully in control of their consumption what he really means is that for the first time Enemalta will have full control of consumption of the consumers.
In yet another Gattian cynical move instead of helping the consumer he finds ways to protect the corporation.
One wonders if , instead of wasting his energy ridiculing Dr Edward Mallia' suggestions on Bondiplus a few years ago, Dr Gatt had worked ona business plan to reduce Malta's reliance on fossil fuels where we would be today.
Instead , like the land grab, er, sorry, Smart City Debacle, the minister who acts like a bull , has broken all the china in the shop and tries to fix it by getting the customer to pay. (apologies for the mixed metaphors, but you get the drift!!)
maria curmi
Oct 29th 2009, 18:35
With all the smart meters are our bills getting less expensive if not whats the fuss and why not new services are not being installed with smart meters till now 30.10.09 and save a lot of man power and money to changed them again
Anthony Magri
Oct 29th 2009, 18:30
A bill for over 80 Euros had to be reduced to about 20 Euros. That's the position of the accounts section of the W & E services.
If you don't know how to check your bills then easily you are overcharged.
Paul Pace
Oct 29th 2009, 18:29
I do not suffer from depression, but listening to this people I get depressed!!!!!!!!
It is a shame seeing PN so negatively inclined looking after onl how to raise cash from us.
g.c.Forte
Oct 29th 2009, 18:27
SHAME on you Dr. Gatt............Is this the way to solve the problems. Why don`t you go and beg (if neccessary like Mintoff use to do) and bring some investment. Is this a Christmas present.
C Vella
Oct 29th 2009, 18:19
And what about thoses cars with the logo of enemalta travelling 24hrs around Malta during off duty by enemalta employees???
Roderick Bajada
Oct 29th 2009, 18:14
"Malta has to look again at its power tariffs" - Gatt
"Malta has to look again at it's government and ministers" - Roderick Bajada.
Manuel Micallef
Oct 29th 2009, 18:04
Tightening the belt all round......
G. Fenech
Oct 29th 2009, 18:02
We need a full independent audit on Enemalta, and until this happens, we're going to keep on getting price hikes and lies about cost.