Water and electricity bills will remain unchanged next year, the Finance Ministry confirmed yesterday.
A ministry spokesman said when contacted: “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