Fabian Demicoli

Electricity Tariffs: Who is paying for who?


 GRTU continues to insist that the Electricity tariffs as given to MCESD Social Partners on 23rd October 2008 and as finally stamped by Government on its Press Release of 28th October 2008 continue to include cross-subsidization.

Despite stating that the capping of 5.2 million to large industries will now be taken on by Government, the tariffs in themselves show no changes from one document to the other. This clearly shows that such tariffs, as outlined on 28th October 2008, include cross-subsidization and capping will be paid for by SME‘s.

GRTU continues to stress that the matter will be taken to Local Court and the European Institutions to make sure that the interests of its members, amongst which restaurants, supermarkets and mini-markets, bakeries, commercial garage owners, sprayers, pharmacies, IT retailers, beauticians, importers and distributors and frozen foods, fish shops, butcher shops, small hotels, bars, importers of wines, spirits and beverages, white and brown goods importers and retailers, confectioners, take-aways, entertainment industry clubs and discos, are safeguarded accordingly.

GRTU insists that no cross subsidization is acceptable and that no back dated payments will be acceptable either. The truth is that SMEs will pay 39%, 52%, 65% more than those users utilising over 5 million units and worse still there is discrimination between enterprises within the same category of business so that effectively one smaller enterprise is subsidizing one larger enterprise in the same category of business.

This cross-subsidization affects over 39,000 non-residential account holders. GRTU is absolutely confident that the vast majority of business owners in Malta from all categories will obey its Directive not to pay these excesses were these tariffs to be imposed without amendments agreed with GRTU.

GRTU continues to insist that these tariffs are simply not acceptable. At a time when the EU Commission is doing its utmost to support SME's, in Malta a horrendous proposal is being imposed which contradicts all that we are supposed to achieve by the new Small Business Act, so highly emphasized by the Commission.

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