Advert

Government giving out €11m to alleviate energy bill woes

All but extravagant electricity users will be receiving an allowance to mitigate the high energy prices. Photo: Chris Sant Fournier

All but extravagant electricity users will be receiving an allowance to mitigate the high energy prices. Photo: Chris Sant Fournier

If you're careful with your electricity usage, check your letterbox next week as you might be in for a pleasant surprise.

With bills at an all-time high, the government will, as of Monday, be posting cheques totalling €11 million to nearly all households in Malta to ease the burden of higher energy tariffs.

Finance Minister Tonio Fenech said this energy allowance would go to households that have not exceeded 10,000 units of usage in a year, meaning 97 per cent of them would be receiving some form of help to pay their energy bills.

The allowance, announced in the Budget, will see single-person households receiving €55, two-person households €80, three-person households €105, four-person €130, five-person €155 and six-person €180.

Apart from this, 28,000 low-income households already receive energy benefits that have recently been increased.

Mr Fenech said that for households with average consumption, the allowance would cover the hefty tariff increases of the past few months and for those consuming less than average the allowance could actually work in their favour.

Intended to offset the effects of higher oil prices on utility bills, the government was taking on the burden itself, rather than increasing the cost-of-living allowance (COLA), which employers would have to pay instead.

Explaining the rationale behind the flat rate, Mr Fenech said it was the only socially just measure, as giving allowances corresponding to usage would be tantamount to encouraging people to consume more.

The minister also said that, thanks to the tariff reform, people were consuming less, so much so that the number of households using less than 10,000 units yearly had increased over the past two years. This made more people eligible for the scheme and pushed up the government's original estimate for the allowance up by €1 million.

It is evident that the government has aimed this scheme at all but the profligate. In comments to The Times, engineer Marco Cremona, an avid environmentalist, said that 10,000 units a year amounted to 27 units a day and any more than that would be "extravagant".

While Mr Cremona said his two-person household consumed only 4.5 units a day, he said a normal family's usage would be around half the limit.

"I imagine that someone wasting 27 units a day would have four air conditioners on simultaneously and the pool's pumps running in summer, with the house being fully heated in winter," Mr Cremona said, adding that people who wasted this much were probably too rich to bother.

Advert

14 Comments

Post comment

Comments are submitted under the express understanding and condition that the editor may, and is authorised to, disclose any/all of the above personal information to any person or entity requesting the information for the purposes of legal action on grounds that such person or entity is aggrieved by any comment so submitted.

At this time your comment will not be displayed immediately upon posting. Please allow some time for your comment to be moderated before it is displayed.

Your User Profile is incomplete.
Please click here to complete your profile before posting comments.

J Chetcuti

Jul 24th 2010, 15:09

I have all the appliances in your list with the exception of the a/c. We're a family of 5, and the average of my last 6 months is 5.75 units per day.

lgalea

Jul 24th 2010, 17:57

J Chetcuti keep on joking. We're laughing. Does your meter really register your consumption?

T Camilleri

Jul 24th 2010, 18:03

J Chetcuti
Let me tell you a story of a donkey owner who wanted to save money from feeding him. So a friend of his told him that if he took the donkey he will train it not to eat. They agreed and after a week the donkey was returned and his friend guaranteed that the donkey had learned not to eat as he had no eaten anything during the week that he held him. The donkey owner was grateful that he would now save money from the donkey's feed, but it happened that after three more days the poor donkey died.

I know of someone who keeps the refrigerator setting so low to save energy that he ends up throwing away a lot of food because it goes bad since the temperature is not low enough, but in the end he is saving on electricity. In winter he switches on the geyser for a couple of minutes just enough for the water not to be icy cold, but then all the family get a lot of colds and have to buy a lot of medicines but he is still saving on electricity.

Chris Grillo

Jul 30th 2010, 11:17

Exactly my sentiments mate... it is what I go through these days... daily recording the meter output, and being happy when I use less than 12...

But July has seen my output climb to an average of 20, with a peak of 27!!!

Advert
Advert