Warning on higher power rates

Electricity tariffs might well return to the high levels of October 2008, when an unprecedented hike provoked a backlash from unions and employers alike.

With the price of oil steadily increasing, social partners attending a meeting of the Malta Council for Economic and Social Development (MCESD) were informed yesterday the rates could revert to the levels of almost a year ago.

The controversial tariffs were revised downward by 20 per cent in April, only because oil then cost about $40 a barrel. Investments Minister Austin Gatt had later expressed regret at the way the introduction of the new rates was handled.

The social partners were told at a meeting of the MCESD that if the price of oil went higher than $75 a barrel, re-introducing last year's tariffs was a very strong possibility.

Dr Gatt warned that households would once again have to accept an increase in their electricity bills as the price of oil continued to rise - echoing similar warnings by the Prime Minister over the past weeks.

After Enemalta Corporation completes its revision, the new tariff structure would have to be approved by the Malta Resources Authority. Based on the six-monthly revision exercise, the new tariffs would be effective retroactively from October 1.