Higher tariffs legally in force

Contentious higher electricity tariffs were made legal last week after having been approved by the energy regulator in December.

The government published a legal notice bringing into force the new regime.

The controversy over the tariffs, which saw unions and employers' organisations up in arms, is expected to drag on after Labour leader Joseph Muscat said the opposition would ask for a parliamentary vote on the legal notice.

Speaking on Wednesday at the annual conference of the Labour Party's women's section, Dr Muscat said the opposition would challenge the high tariffs in Parliament.

The government has defended itself citing soaring oil prices but social partners say the hike should be absorbed, at least in part, because the rise is likely to deal a serious blow to the economy.

The tariffs, applicable from January 1, stipulate that the lowest residential rate is 16c1 per kilowatt hour for the first 2,000 units. The next tranche of 4,000 units is calculated at 17c3 per kWh and the third tranche of 4,000 units is charged at 18c9 per kWh.

Residential tariffs jump dramatically at the fourth tranche of 10,000 units, priced at 36c per kWh. Any consumption above 20,000 units is charged at 62c per kWh.

Various tariff regimes apply for commercial outlets and a distinction is drawn between day and night consumption, with the evening rates cheaper than daytime tariffs.

Employers' organisations have complained the tariffs are substantially higher than promised and have also demanded that the government reviews the stimulus package announced in Parliament to make up for the added costs incurred by the higher utility rates.

At the last meeting of the Malta Council for Economic and Social Development, the government promised it would hold one-on-one negotiations with those companies and sectors that experienced difficulties caused by the tariffs.