When undertaking a tariff revision, Enemalta and the Malta Resources Authority (MRA) applied future crude oil prices as quoted on international exchanges, the Finance Ministry said today.

It said that in the March 2009 tariff, the future price of crude for April to December 2009 - $54 per barrel, was applied; while in the latest revision, the future crude oil price for 2010 - $81 per barrel, was applied.

Losses emanating from hedges were never recouped from tariffs, but profits made were applied to tariffs in the 2007/2008 period, keeping tariffs lower than what they should have been, it said.

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