Kurt Sansone
Utility rates won't change this year
Water and electricity tariffs introduced on January 1 will remain in force for the whole year, the Finance Ministry has confirmed.
"Enemalta locked in the price of oil and the dollar exchange rate for 2010. There will be no change for this year in tariffs," a spokesman told The Times yesterday.
When speaking in Parliament on Monday, Infrastructure Minister Austin Gatt, previously responsible for Enemalta, warned that throughout this year international prices of refined fuel oil were expected to go up by 43 per cent while the price of gasoil was expected to shoot up by 57 per cent.
This gave rise to speculation that the new higher tariffs might be revised upwards once again sometime this year despite a government promise they were not going to change so as to give industry and families price stability.
However, the spokesman said Minister Gatt had read reports from leading international financial institutions Goldman Sachs and Barclays as well as oil company Shell showing that an upward trend in the price of oil was expected this year.
The spokesman clarified this was not linked to Malta since Enemalta had locked in the price of its oil purchases for this year.
Dr Gatt was speaking on Monday during the parliamentary debate on a motion presented by the Labour Party calling for the legal notice that introduced the higher tariffs to be revoked. The motion was defeated.
The tariffs have been criticised by all social partners, with employers warning they would erode competitiveness. On Sunday and Monday, 11 unions organised two protests against the tariffs.
In the last Budget, government introduced a one-off energy benefit amounting to €10 million for families as well as an assistance fund for industry to cushion some of the negative impact.
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lgalea
Mar 4th 2010, 22:15
Government promises = New Year's Resolutions
Alexander Pace Gouder PM, Ministers, Parlamentary Secretaries = Lm125 SALARY INCREASE PER WEEK
Paul Smith
Mar 4th 2010, 19:22
Leo
according the NYMEX oil is over $80 at the moment and we did not even get into the summer holiday season or the America driving season. Demand growth will soon exceed production and the thick goey stuff is finite. Reportedly we will lose 4mbd end of 2010, with little known oil left to be discovered prices will get a lot higher. People mention tar sands but they wont arrest decline as production will never exceed 4mbd and are currently half that, tar sands need huge energy invested for smaller returns. People mention NG but a whole new infrastructure would need to be built to support NG then add in jevons paradox and the whole investment would not be worth it for such a short time until peak NG same goes for coal. My guess is the world will soon become a lot bigger without the ability to fly cheaply anywhere in the world, only the very very rich will afford holidays abroad - will they chose Malta - get ready for the biggest paradigm switch you ever saw in your life
Alexander Pace Gouder.
Mar 4th 2010, 15:46
Yearly Increases in wages for Workers Minimal. Same for Pensioners. Parlament Members Increase in Wages Maximum. Poor Middle Class Workers/Pensioners. Money in pockets Bye Bye. Poverty range!!!!!!!!!!!!!!!!!!!!!!!!!! Viva il Parlamentari. Xalata bic-Cittadini. Imsiken ahna.
leo attard
Mar 4th 2010, 15:10
why should we believe any promises since past promises were broken ---- ohhhh! i remember a certain chap swearing rates would go down when oil goes below $80 ... we all know the rest. CASE CLOSED!
Anthony Mizzi
Mar 4th 2010, 14:19
You knocked us out with only one PROPOSED change, you think we can take anymore?
W are now already getting shock waves with statements covering consumption end January 2010 when revised tariffs have not yet come to force.
We might even have to earth our letterboxes with the shocks you'll be giving us.
P. Schembri
Mar 4th 2010, 11:44
Why worry? Come election time and the w&e tariffs will be revised DOWNWARDS!