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News | Sunday, 19 October 2008

Utility tariffs favour high energy consumers: Edward Mallia


High consumers will be proportionately less hard hit by the proposed utility tariffs than frugal users, energy expert and veteran environmentalist Prof. Edward Mallia claims in an article published in this issue of MaltaToday.
A two-person household consuming between 3,000 to 4,000 units of electricity will see a greater percentage increase in its utility bills than a five-person household using between 12,000 and 16,000 units of electricity.
While the frugal two-person household will see its utility bills go up by 68%, the corresponding increase for the more prodigal five-person household will only be 31%.
Edward Mallia notes that the doubling of water and electricity meter charges will hit everyone alike.
“Beyond that, the tariff structure, with or without eco-rebates, favours heavy users,” Mallia writes.
Mallia also hits out at the KPMG report for using Denmark as a model when setting the 13,00 unit per person threshold for one to qualify for eco-rebates.
He claims that such a comparison is useless without information on modes of energy used in Denmark.
“The Danes use gas for house and water heating and do not, as yet, use air conditioners in summer. Water heating and air conditioning represent major uses of electricity here.”
Neither will the much-trumpeted Eco-reduction make a big difference to families.
Mallia’s analysis shows that a family of four in the 3,000 - 4,000 unit bracket will experience a €380 increase over the 95% surcharge regime without eco rebate, and around €240 on two of the rebate schemes.

 


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