NEWS | Wednesday, 22 October 2008

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‘Damage already done’ on tariffs, Labour says

The Opposition yesterday poured cold water over government’s plans to tread slowly over proposed hikes in electricity water tariffs.
It accused the government of having created uncertainty in the country, and leaving a negative effect on consumer spending after first announcing it would introduce the new tariffs retroactively as from 1 October.
The government hit back at the Opposition saying it had not been able to present concrete proposals over recovering the cost of production for water and electricity.
Labour said it would shortly present its own energy policy, accusing the government of deviating from the real issue at stake, that of additional burden on families due to the proposed tariffs.
Labour said it was once again appealing to the Prime Minister to repeal the tariffs and start a real consultation process with the social partners.
The government is considering a two or three-year transition period for the new water and electricity tariffs, without removing the capping mechanism retroactively from October 1.
Employers protested against the overnight hike in tariffs, saying it would be crippling for the economy and even threatening job losses.
On Monday, Labour leader Joseph Muscat said the utility tariffs being proposed by the government were equivalent to a 245% surcharge, in a study on the tariffs the party presented.
Muscat said the party’s calculations were a critical analysis of the government’s proposals.
Muscat said government’s calculations had included summer houses, garages and zero-person households, which is why the impact of the proposals would be between €1.50 and €5 a week per household.
Based on the 2005 Census, Labour calculated that the effect of the electricity tariffs would between €5 and €9 per week. In the case of the water tariffs, the proposals would translate into a rise of between €0.70 and €1.60 per week.
Labour said electricity meter rental would go up by 170% for one-phase supply and by 700% for three-phase supply for domestic users. Commercial one-phase meter rentals would jump by 150% and three-phase meters by 650%.
Labour added that the eco-threshold for a refund was not realistic, since it would only apply for those whose power consumption does not surpass 1,300 units per person per year. The party said the annual consumption of a family of three showed that this reached 4,620 units – 1,540 units per person and 240 units more than the threshold to qualify for this reduction. The study included household items such as a refrigerator, water heaters, five energy-saving bulbs, kettle, microwave oven, toaster, washing machine and an oven.
In a reply issued yesterday, the Ministry for Infrastructure, Transport and Communications dismissed Labour’s calculations as the “invention of anonymous consultants”.
“Government has no reason to refer to the Labour Party’s calculations, since the process of consultation with the social partners on the new tariffs is still ongoing. Labour’s figures are intended at disrupting the consultation process.”
The ministry said the fact that Labour was quoting anonymous consultants “does not change anything from its typically irresponsible behaviour of making false declarations.”
The ministry added that it had invited the Leader of the Opposition to a presentation of its proposals in terms of the revision of energy tariffs. “Instead, the Opposition Leader chose to send other representatives in his stead, who didn’t even declare themselves as the authors of the false figures issued by Labour yesterday.
“Instead of offering alternative proposals, as promised by Joseph Muscat, Labour has chosen once again to be partisan.”

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