Tariffs published on Friday when unions were still meeting KPMG auditors
Matthew Vella
Julia Farrugia The government has published the new electricity and water tariffs, much to the surprise of some of the unions which are still seeking further clarifications to the eco-reductions for low consumers of energy.
The two legal notices were published on Friday, when unions were meeting with KPMG auditors after protesting that not everyone would benefit from government’s eco-reduction.
The new tariffs, retroactively dated to 1 October 2008, went unnoticed by the General Workers Union and the Malta Union of Teachers who expressed surprise at their publication.
On the other hand, Union Haddiema Maqghudin secretary-general Gejtu Vella said he was aware that the new tariffs had been published.
GWU deputy secretary-general Gejtu Mercieca yesterday described the legal notice as a surprise.
“This is definitely unacceptable, as to date the absolute majority of the Maltese unions and representatives of the business community have not reached an agreement with the government on the tariffs,” Mercieca said.
“It’s a surprise for us as until last weekend the majority of the unions were still in discussion with the government on clear important questions regarding sensitive issues such as the 73% and the eco-reduction rates.”
The unions, except the UHM and the CMTU, in fact met KPMG at the behest of government after declaring that government had misled them when it claimed that 73% of Maltese families would be benefiting from the eco-reductions on tariffs.
In fact, the government was also including properties that are either vacated or used as secondary residences.
MUT president John Bencini also expressed dismay, saying his union was never informed about the publication of the tariffs.
“If the government will roll on with these tariffs then there will be huge consequences for our families. The legal notice was an irresponsible act as the government knew that the absolute majority of unions was not fully in agreement with the new tariffs.
“On Friday, KPMG’s auditors confirmed our doubts. The meetings confirmed that we were right about doubting the government’s claims. We will still send our letter to the government and we will wait for its answers,” the MUT president said.
Asked whether his union will consider taking industrial action should the government insist on the tariffs, Bencini said the MUT was not ruling out anything. “We will be definitely working on this issue together with all well-intentioned unions.”
The unions have accused government of giving the impression that if a person used 1,000 units of electricity, he or she would benefit from a 25% eco-reduction while the next 750 units would be discounted by another 15% eco-reduction.
But last Friday, when unions met KPMG auditors who were appointed by government to work out these tariffs, the firm said that if a person consumes just one unit over the 1,000-unit threshold (upon which it was believed there was a 25% eco-reduction), then this rate would instantly fall to 15%.
But if consumers then exceed their consumption by just one unit over the next 750 units, the 15% eco-reduction would be lost completely.
Unions have charged government with misleading them on the rebates on the new tariffs. John Bencini said unions were given the impression that the new rates would benefit 73% of families, before realising that this referred to 73% of all utility bills or accounts. “This means government is including vacant houses and summer residences.”
Only UHM and CMTU have so far agreed with the new tariffs proposed by government. The UHM’s Gejtu Vella said all the unions agreed that the eco-reduction would be lost if consumers exceeded the 1,750-unit threshold.
New charges
Water supply fees will be €1.40 per cubic metre for any quantity not exceeding 33 cubic metres per person residing in the tenement and €5.15 for any quantity exceeding 33 cubic metres per person.
As for electricity tariffs, residential premises service will be charged an annual €27.95 service charge up to 31 December, irrespective of whether the service is single or three phase. From 1 January 2009, the charge will go up to €65 for single phase and €195 for three phase.
A residential three phase service that exceeds 60 Amps per phase will also be subject to a maximum demand tariff of €21.05 per annum per kilowatt of the maximum demand in any period during the year.
Both primary and secondary residences will be eligible to an eco-reduction of the amount due for consumption of electricity, unless there is no individual registered on a residential premises service.
If one individual is registered on a residential premises, they will be eligible for an eco-reduction of 25% of consumption does not exceed the consumption of 2,000 kilowatt-hours per annum.
If more than one individual is registered on a residential premises service, the eco-reduction will be of 25% on the amount due if the consumption does not exceed 1,000 kWh per year per individual registered; and 15% on the amount due if the consumption exceeds 1,000 kWh but not more than 1,750 kWh per individual registered.
As per the new legal notices, the installation charge due on every new application for the provision of a single phase service will be €300 and €900 on a three phase service. Enemalta will also be entitled to a charge a fee of €1,500 if a meter installed on a consumer’s premise is found to be missing. A charge of €55 will be made for the replacement or removal of a meter if its removed at the request of the owner of the premises. All above rates are inclusive of VAT.
A non-residential premises service will incur an annual service charge of €120 on single phase service and €360 on a three phase service. If the three phase service exceeds 60 Amps, it will be subject to a maximum demand tariff of €20.50 per kW of maximum demand if consumption is not more than 5 million kW; €19.20 if consumption is not more than 5.5 million kilo volt ampere hours (kVA) and €17.20 if consumption exceeds 5 million kW or 5.5 million kVA – exclusive of VAT.
Enemalta will be able to determine, in the case of a hotel or a guesthouse or a factory, having multiple activities, which of these should be charged the tariffs, as well as ordering the installation of sub-meters to discern between the consumption used for various activities.
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