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New electricity rates still under study

The new electricity rates, due to come into force on January 1, remain shrouded in mystery as the Malta Resources Authority is still evaluating the proposals for the tariffs submitted by Enemalta.

The process has already been under way for the past three weeks, during which consumers have not been told what to expect. Enemalta and the Water Services Corporation are not allowed to announce the proposed rates by order of the MRA.

A spokesman for the authority said the evaluation process was still going on and no deadline had been set for any announcement to be made.

In the past, it has taken the MRA several weeks to approve the public utility companies' tariff revisions. Last year, tariffs introduced on April 1 were published by Enemalta in March and only approved by the authority in May.

The Infrastructure Ministry has justified the January 1 increase by citing higher operating costs, primarily the rise in the price of oil which represents 62 per cent of Enemalta's expenses. Its forecasts show that fuel oil is expected to cost more next year than it did in October 2008 when the new tariffs were introduced.

The total increase in costs for Enemalta and WSC to be borne by consumers is expected to be about €85.6 million. Of these, €74.9 million are attributable to higher oil prices and €10.7 million to investments in the new sewage treatment plants, the smart meter system and the new power station at Delimara.

The higher bill for oil includes a €21.5 million shortfall the corporation is expected to register at the end of 2009 because income from tariffs was not sufficient to fully cover oil costs.

Early last month, employers and unions urged the MRA to announce the new tariffs immediately, saying that the uncertainty would have a negative effect on trade during the festive season.

Meanwhile, the police are still investigating the explosion at the Marsa power station that disrupted power supply across the country on Wednesday last week. The magisterial inquiry is also still underway.

Confirming that the two probes have not yet been concluded, the police said it was "not prudent" to comment further.

The switchgear tripped, prompting an automatic emergency system that cut off the power. A fire caused by a blast was extinguished by another automated safety response system and no one was injured. One hour after the explosion, electricity started coming back in various areas and by 11.30 a.m. all power had been restored.

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