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W&E tariffs to remain unchanged next year

Water and electricity bills will remain unchanged next year, the Finance Ministry confirmed yesterday.

A ministry spokesman said when contacted by The Sunday Times: “Despite increases in the price of oil, tariffs will be maintained at the current level thanks to the successful locking of the oil price by Enemalta for a significant part of the country’s oil requirements for 2011 at levels just under $82 a barrel.”

He pointed out that the current price of crude oil stood at around $87 a barrel while future prices for 2011 were already touching the $90 mark.

According to Resources Authority chief executive Anthony Rizzo, Enemalta is only required to obtain authorisation from MRA when it wishes to change the tariffs.

However, despite there being no legal obligation on Enemalta the regulator will be requesting the company “to substantiate its position” nonetheless, Mr Rizzo said. It was this time last year that Enemalta had submitted a report to the Malta Resources Authority proposing the higher tariffs consumers have been paying throughout 2010.

The energy regulator analysed the company’s cost structure and gave the go-ahead for the higher tariffs. The authority had denied Enemalta’s request to recoup loss of income because of lower consumption by transferring the cost to the following year.

In justifying the upward adjustment to tariffs Enemalta had said oil represented 62 per cent of all the company’s expenses.

It had projected an increase in oil prices of €47.5 million and also sought to recoup some €10 million from consumers for investments made in the new sewage treatment plants, the smart meter system and the Delimara power station extension. ksansone@timesofmalta.com

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David Ganado

Nov 8th 2010, 10:48

Hey, i remember someone promising to remove VAT.......and he did, once he once the election on that promise, only to replace it with CET!!
It's impressive how some people are so easily fooled!

C Falzon

Nov 7th 2010, 11:13

@E. Vella
The electricity prices in the US are not particularly relevant as the electricity there is produced mostly from coal and nuclear.
Most of the coal is mined in coal fields owned and operated by the very same companies that produce the electricity and the cost is therefore not dependant in any significant way on the price of oil.
The same applies for some countries in Europe, most notably Germany (coal) and France (nuclear).

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