Cynthia Busuttil
Utility bills to rise by up to €175
New sewage tariff being subsidised
Nearly 90 per cent of households will see their water and electricity bills go up from next month, with increases ranging from a minimal €8 for three-person households to €175 for families of five or more.
The bills will go up by these amounts over what families are paying now despite the one-time government compensation, amounting to €10 million, an-nounced in the Budget.
But according to the authorities, reducing one's consumption by up to 15 per cent would be enough to bring the costs down to current levels.
On the other hand "vulnerable" households of three people or more will see their bills go down by between €18.92 and €29.91 over current rates and by up to €93.88 less than they were paying between October 2008 and last April.
The new tariffs are expected to be valid for the whole of next year due to a mechanism that will keep the price of purchased fuel at the same level throughout 2010, the government said in a statement issued last night.
The government said there was no increase in meter charges and the residential bills would be of equivalent amounts to those established in October 2008, which had caused uproar in the country.
The following April, in line with falling oil prices, tariffs were cut by 22 per cent for households and by up to 26 per cent for commercial and industrial consumers.
But a subsequent increase in fuel prices caused Enemalta to lose €21.4 million since then, the government said. It is expected that next year Enemalta will spend €35.5 million more to buy the same amount of oil that it bought this year.
The government said it would be subsidising families to the tune of €41 million for water and electricity and for a new drainage charge, and was introducing lower night tariffs for industry, hotels and others who work at night.
The new tariffs will come into force on January 1 after being given the green light by the Malta Resources Authority.
In November Enemalta and the Water Services Corporation filed a request with the MRA for an increase in tariffs effective as from the new year to make good for increased operating costs.
The tariffs were left unannounced pending the approval of the authority, a decision that led to criticism by the employers and unions who believed that it only served to cause uncertainty during a time when the country was already suffering the repercussions of the recession. They also believed this delay would spoil the festive season.
Yesterday, the government said there was a disagreement between Enemalta and the authority over regulatory principles but Enemalta decided to reduce its predicted income for next year by €7.29 million and was considering the possibility of appeal.
The Water Services Corporation has also asked for a revision in water tariffs because of the impact of electricity prices on its operations. The corporation is expected to see its electricity costs increase by €6.47 million next year.
It has also introduced a €20 sewage tariff, although this will not impact consumers since it subsidising this new charge from the subsidy it uses to cover the current water service tariffs.
The government has set aside €10 million for one-time energy compensation to families, over and above the €7 million in energy benefits to some 28,000 households.
"This means that 97 per cent of households will not pay more for their electricity, or have a minimal increase," the government said, referring to the difference between the bills based on the October 2008 rates.
The government said the new Day And Night Tariff for commercial entities should incentivise those who work at night by offering better rates. The tariff is only for non-residential bills which use a certain number of units but can be extended with the introduction of smart meters.
Last night the Labour Party described the new rates as Prime Minister Lawrence Gonzi's Christmas present to families and businesses. It said the new tariffs would bring many families to their knees and would shock the economy and endanger jobs.
It estimated that electricity tariffs would rise by 20 per cent, back up to October 2008 levels, while water tariffs were much higher than in October, an announcement made just 10 days before Christmas and at a time when oil prices were going down.
It also pointed out that the government had formalised the introduction of a new sewage tax although it was subsidising it for the time being.
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Galea. L
Dec 15th 2009, 23:32
Joe Vella
The PL in 1958 didn't want to be a stooge of the British Government and neither did Dr Borg Olivier when the Governor approached him to form a government after Mintoff's resignation.
What PL found in 1971 was total havoc in every sector of the economy including Malta in debt and no money left in Malta's coffer to even pay the government employees. Same situation that we are in now only that now we are in a very much worse situation than in 1971.
By the way you didn't deny anything that I said the PL had given the Maltese people and workers because you cannot deny it.
Adrian Borg
Dec 15th 2009, 21:21
Just a perfect Christmas present from Dr.Gonzi.
Unfortunately we all complain about things like these in the first couple of days and then we subdue to everything. We have to stand up for our rights and unite and do something but i guess it's just another brick in the wall!!
C.camilleri
Dec 15th 2009, 20:38
@ Karl Abela
You are confused.
95% of the population is knocked out..
Was JM who announced the new HIGHER tariffs + the new sewer tax?
And by the way we will soon hear about the new HIGHER gas tariffs
William Forte.
Dec 15th 2009, 19:25
uuuuuuuu kemm tgergru, ghax gholiet ftit il hajja.Jghidu sew li min ma jonqsu xejn dejjem igerger. Il PN ghamilna sinjuri, u ma tammettuhx. Dejjem bid doom and gloom. Grow up.
F J Brincat
Dec 15th 2009, 19:14
Joe Vella: Are you the same guy from Mellieha who is always telling us that it was Alfred Sant that wanted to introduce the sewerage tax and upto a few months ago was still denying that that this government has already introduced it (was introduced last year to be exact, but this year there is the added joke of the subsidy). Eh Joe?
1958? 1971? Why not go back to 35,000,000 BC Joe? Have you got some nostalgic titbit to relate from around that time too Joey? How was life back then Joe? Had it good then too? Who was in govenment back then?
Do me a favour Joe. You're still living in the past - 51 years in the past. And you still have the venom in your tongue (and fingers LOL). Eh Joe?
Fenech M D
Dec 15th 2009, 17:38
My father, a pensioner, has an electronic wheelchair. He has to charge it everyday.
Can someone explain how one can fit an energy savings bulb in it, so that he can save electricity?????
Ghax meta jircievi l-kont gholi hafna jghidulu 'Int tahli d-dawl, mela ma bdiltx il-bozoz!'
!#$%^$&^%*#$
Joe Vella
Dec 15th 2009, 15:48
@ Galea L.
Before you start and telling us what your PL Government gave us. Start by telling us what your PL Government left Malta with in 1958 and what the PL found when it was elected in 1971.
Mark Piscopo
Dec 15th 2009, 15:42
@Karl Abela
Kindly note that there was a drastic increase in car licenses, an increase in gas cylinders,an increase in the price of cigarettes, the parking space contribution tax for first time buyers and now these drastic increase in WATER and ELECTRICITY bills. Now you give me an answer of whom is demoralizing and talking down the Maltese economy.?
Joe Vella
Dec 15th 2009, 15:41
Alleluja, for when the Smart Meters are installed in every household in Malta and Gozo. One less thing for the Gloom and Doom Crowd to complain about having to pay based on estimates. But then who said that the Gloom and Doom Crowd are a bunch that base their criticism on reason and logic.
What I call theft is having those who conserve having to pay for those who waste. I guess we all know where the Gloom and Doom Crowd stands, and where the rest of the Maltese population does.
Galea. L
Dec 15th 2009, 14:48
Joseph E Briffa
Don't bet on it Briffa. Pathetic are those who are trying to prop Gonzi to keep him in government. The general election was stolen and Gonzi is going to have a whole lot of trouble because as they say you shall not enjoy what you steal. Who referred to the eu Briffa?
M. Debono Your comment shows the incompetents running EneMalta because you do not hedge when the price is high but when it is low. Very good certificate you give to Gonzi and those whom he appointed to run EneMalta.
J Farrugia NO Farrugia. Customers have absolutely NO obligation to read the meter themselves and communicate the reading. It is EneMalta and WSC that have to obligation to send their meter readers and take the reading.
My PL Government gave all the Maltese workers 52 days leave because Saturdays were working day under your PN Government. My government gave us a 40 hour week, two bonuses, the minimum wage, maternity leave, a pregnant person cannot be discharged while being pregnant, vote at 18, pensions which your PN voted against, automatic COLA to all workers, the list of benefits given by PL is endless Farrugia.
Joseph E Briffa
Dec 15th 2009, 14:32
For those bloggers who are too lazy or ignorant to read their electricity meters......make your bed and lie on it. The Lord helps those who help themselves. To all bloggers who pretend to feel that this marginal increase is the end of the world; will half a cent a day at the most make any difference to your life style? Even an eight year old would not accept that as pocket money. It would be a good thing for these scroungers to be propped up by others and won't have to pay for their energy bills. But still new cars are everywhere in sight and luxury cars abound in Malta and Gozo where a rickshaw ride can take you anywhere. Investments in stocks and shares were a record this year, and the Maltese have around Eur5 billion in the banks, besides Lm80 tucked away under the tiles. As for I Galea he is simply pathetic, simply fanning the flames will not result in bringing Labour to power, and even if that materialises he will still have to pay for his energy bills and Malta will not get out of the EU. Sorry I Galea this is wishful thinking.
J Farrugia
Dec 15th 2009, 14:16
@ Galea L. Yes it is your DUTY to have the meter read and Mr Vella gave you 3 options how to do it. If you dont want to do it, dont do it. But then dont come here squeling like a pig li l-hajja qed toghla. If the cost of living is going up at least t THIS government is giving you something back unlike what YOUR Government did for 7 whole years. He froze all increments and wage increases for 7 whole years. IOr have you conveniently forgotten? And besides the new tariffs are not punitive as YOUR latest government did in 1997-8 when he got out a calculator and started imposing taxes on water and electricity like a zombie. SOcial conscience is working under THIS Government and in fact the 2 corporations are going to lose money. So enough crocodile tears from arrogant persons the likes of you. Thank godness, speaking for me, the bills will DECREASE A BIT and not increase. That's social conscience for you.
JM Gozo
Dec 15th 2009, 13:53
I think that we are 2012 !!!!!!!!
Yuo know the end of the world
Or may be the end of malta
may be he wants money to biult supper ships to survive the nation
Come on Gonz
Let us live
M. Debono
Dec 15th 2009, 13:47
@ Chris Finch
Yes the price will remain the same whether oil goes UP or DOWN.
It is called hedging.
In fact the PL are in favour of this method of buying oil, and critized the government when he stopped doing it in the late 90s, beginning 2000s.
P.Cassar
Dec 15th 2009, 13:06
BUT WHY, WHY, IS IT THAT IN MALTA W/ELEC PRICES GO UP PRECISELY WHEN THE PRICE OF OIL GOES DOWN.
WHAT TYPE OF MISMANAGEMENT IS GONZIPN APPLYING????
Marco Cremona
Dec 15th 2009, 12:56
How can the regulator (MRA) say that there is no need for stakeholder consultation on the new tariffs and then they approve the introduction of a sewage tariff? How will the sewerage tariff apply? Will it be on a per-person-in-the-household basis or tagged on to mains water consumption? How will sewage be measured?
How will MRA/WSC control those who use a borehole who will now not only save on mains water consumption but also not pay the sewage tax - if this is tagged to mains water consumption?
Will the citizen be made to pay the full cost of the sewerage services even though the government is failing to recover a single litre in recycled water from the new multi-million euro sewage treatment plants? Should we be paying the full price for their short-sightedness?
Where was the regulator when WSC insisted on building sewage treatment plants in the middle of nowhere (far away from agricultural land, the major user of recycled water)?
What measures are being taken to reduce groundwater extraction by the private sector to ensure a sustainable source of water, and affordable tariffs?
Does MRA have all the answers?
I think we needed consultation more than ever.
Mario Bonnici
Dec 15th 2009, 12:38
Thank You Mr. Minister.
A very merry christmas to you and everyone.
Maria Vella
Dec 15th 2009, 12:23
How silly of all those who make a political issue of these blessed tariffs. Sometimes I wonder whether the PL has the magic wand to make us have all for some fake freee price.All I know is that PL is always complaining and choosing what to quote and how to quote it. the Gahan Malti may fall for such traps. but today we are all a bit more witty. Electricity prices are what they are. Maybe we have gotten used to too much in our lives and the moment we have to pay what it really costs to have it all we complain. Today it is all the PL supporters, tomorrow it will be all the PN ones who will go about in the same way. Shame on us. The only thing that comes for free is a mother's love. anything else has a cost. You want it pay for it. Even the PN supporters have higher tariffs tafx
Chris Finch
Dec 15th 2009, 12:16
So the prices will remain the same even if the price of oil drops to half its current level? More evidence of an extremely weak finance ministry.
Emmanuel Ebejer
Dec 15th 2009, 12:14
A Nightmare Before Christmas.
Christopher Pollard
Dec 15th 2009, 12:12
Where can we find unbiased advice on insulation of apartments built in the Maltese way? As soon as the sun drops our apartment gets cold but how to insulate it when we are above a large garage which we don't own. Any ideas?
Galea. L
Dec 15th 2009, 11:51
Joseph E Briffa
What a pitiful excuse Briffa. Gonzi's government is simply a SCROOGES and GRINCHES one.
Joe Vella
It is not our job or duty to read the meters but the responsibility of EneMalta and WSC. They are shirking their duty because they find it fine to charge us whatever they deem that we have used at whatever rate is suitable for them. What if I didn't use any electricity and water for one or two months when the tariffs were higher? Why should I be charged for something that I didn't use?
This is GOVERNMENT THEFT Vella.
Want to hear it again?
This is GOVERNMENT THEFT Vella.
Joe Vella
Dec 15th 2009, 11:32
@ Dorothy Blake
If you want your concern addressed it is very simple. You have 3 options; 1) take your own reading and phone it in; 2) take your own reading and go the Water Services office in Valletta; and 3) seeing that you have access to the Internet take your reading and go the he Water Services web page and submit your reading electronically. Pay your bill in full by the due date and once you recieve your bill you can simply calculate what you have used in the new year.
Lawrence Cardona
Dec 15th 2009, 10:54
Happy Christmas to all the maltese and gozitan people not leaving behind those in comino today we had the bigest christmas gift that we all where waitng Dr Gonzi was kind gentle and really showed he love all the maltese nation and from our side he want's us to be greatful so in your name i take the oportunity to thank him THANKS DR GONZI you really showed your best now it's all up to you maltese citizens what are you ready to do wait the bills and pay them or it's time to act it's in your hands turn on your unions ask them more money go on your employers ask them more money and if they come out with the old story that they are making us a pleusure that are employing us jobs are a must not a favour wake up Malta and Gozo or you will find your self lost before an other Christmas wish you all the best to come Happy Christmas and a great New Year may Gonzi be with you .
Ramon Casha
Dec 15th 2009, 10:50
A Very Merry Christmas to all voters.
Joseph E Briffa
Dec 15th 2009, 10:47
The price of crude seems to be stabilising at USD70-80 a barrel according to some experts. The new tariffs applicable for the year 2010 in Malta take into consideration the rise from USD 40-50 to USD70-80. Comsidering the substantial rise in world prices of oil and given that oil constitutes around 60% of the cost of production of energy in Malta, the announced tariffs are not punitive. Moreover some 28 000 families in the lower income bracket are not affected at all while for the average family it means a 20% increase on an annual bill of around Eur800 - Eur160 p.a., almost 50c a day. We are told that a reduction of 15% in consumption of energy will keep the bills to the existing level. This should encourage the installation of solar water heaters which would reduce consumption of electricity by more than this amount. thus resulting in a reduction in energy bills. The initial capital outlay on a solar heater is estimated to be recouped over a period of 2/3 years. It is therefore a good investment.
Andrew Cachia
Dec 15th 2009, 10:33
I would like to dedicate Lily Allen's recent hit to the people in government. Thanks
lucas g.
Dec 15th 2009, 10:33
AKS u GUH gej zgur.
Kollox jola mas sema ijed.
kif ha nllahqu mal kontijiet issa jek diga mahnix inlahqu.
u ad baqa is sussidju tad drenagg! ha naraw sa kem idum dan is sussidju.
apgrech
Dec 15th 2009, 10:32
Happy Christmas to you too, Scrooge Gonzi.
Karl Abela
Dec 15th 2009, 10:24
I am confused.
The times writes: ''On the other hand "vulnerable" households of three people or more will see their bills go down by between €18.92 and €29.91 over current rates and by up to €93.88 less than they were paying between October 2008 and last April.''
and Muscat says that: ''the new tariffs would bring many families to their knees and would shock the economy and endanger jobs.''
If Muscat's talk is just gossip then he should be ashamed of himself for demoralizing and talking down the Maltese economy.
Galea. L
Dec 15th 2009, 10:19
The GONZI GRINCHES and SCROOGES who stole CHRISTMAS from the Maltese citizens.
Dorothy Blake
Dec 15th 2009, 10:17
If electricity prices are to rise from !st January can we expect meters to be read prior to that date. If the rise is to be based on the estimated bills can we assume that the estimates will be as before, that all households used more electricity after the rise comes in. Surely it is not proper accounting to put up prices on the basis of someone;s estimate. It is not as though enemalta has not had time to organise meter readings for January 1st as they have known for several months that there were to be price rises from the New Year. At least give householders the option of phoning in or emailing the exact reading taken on 1st January. Pr