GRTU calls on government to keep surcharge

Karl Schembri
The Malta Chamber of SMEs (GRTU) yesterday presented its reaction to the new water and electricity tariffs, calling on the government to keep the current surcharge mechanism while scrapping the discriminatory capping.
While stating that he would flank other social partners in their criticism of the government’s proposals, GRTU Director General Vince Farrugia said he would not “be part of any act of clowning out on the streets”.
Farrugia reiterates his criticism towards the Malta Resources Authority for its total absence from the process leading to new inflated water and electricity tariffs.
He added that the fact that Enemalta’s accounts are unaudited means that the new tariffs are worked out on very unreliable statistics.
“Removing the surcharge goes against all past promises by the government and is not acceptable,” the report prepared by GRTU concludes.
In its report on the analysis of utility rate tariffs, GRTU accuses the WSC and Enemalta of a conflict of interest given that they themselves set the terms of reference while being the final payers of the study presented by KPMG.
“This matter should have been overseen by the regulator, the Malta Resources Authority at all its stages,” as should any changes in tariff changes.
“The lack of initiatives not taken in the past in respect to alternative energies by irresponsible authorities now has to be forked out by the public, trade, commerce, industry and the entertainment and hospitality, industry at large and especially small enterprises.”
The report says the “pay as you use principle” should apply, but Malta lacks the infrastructure to allow its citizens the right to choose their energy supplier, so this has to be considered when final tariffs are issued and agreed to.
For domestic tariffs, the GRTU recommends two kinds of tariffs. One would be a guaranteed price option for a minimal of 365 days.
“This will place users on a safer ground and they could plan at least for a calendar year. While Enemalta has a right to hedge and dictate its basis for a long term, then the citizen should also have the same right.”
A second tariff base could be an alternative multiplier option with the introduction of peak hour use, intermediate and off peak metering.
GRTU is also proposing the introduction of electronic payments against a discounted facility, reducing costs while becoming more environment-sensitive.
The report suggests the introduction of rebates on installation of solar heaters and photovoltaic panels, with rebates covering minimally 70% of outlayed capital, and rebates to be given 50% through billing structure over one year and 50% in payment.
Energy audited residences should be given 50% of the cost of the audit in payment terms.
The introduction of an Enemalta loyalty card for those who use less than their established benchmark would include a point structure that can be utilised by the end user for purchases from “Enemalta Major Partners”.
For the non-residential sector, GRTU calculates that the meter rent will increase from €55.90 to €420, increasing rent by €1 per day.
“While subsidies on electricity and water are not acceptable, there are no rules against providing funds from other sources in a structured manner through eco-driven incentives to make sure that users can meet their obligations.”
MEPA should undertake that all buildings over 1,000 square metres are to minimally meet the energy efficiency in buildings directive, the GRTU said.
The removal of capping will, without fail, have an impact on the 120 companies and hotels protected. GRTU recommends that they are energy-audited with immediate effect and recommendations are made before the end of this year.
The cost of these recommendations is to be studied by Enemalta and a structured rebate system over 10 years is to be agreed to with these industries.
As to water tariffs, the €11.11 million earmarked for future investment is to be removed from calculations. Distribution costs which have risen alarmingly in the last to years need to be identified so that a verified monetary value is only included in the tariff structure.
The rental fees for the meter should be removed and included as part of a tariff structure.
Hotels need to further conserve energy by placing sub metering in each rented room and placing a benchmark to that room, thus making customers pay for excess water beyond the allowed benchmark.
The haphazard approach in recovering all imaginable costs is detrimental to both the business community and the public at large.
GRTU proposed that these tariffs are totally shelved and that the current surcharge adjustment be kept, under more stringent conditions, without any capping mechanism.

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