Where’s the Advantage – Utility Tariffs

GRTU continues to demand straight forward tariff reductions. Government and other bodies are leaking figures in an effort to hoodwink unsuspecting household and business users that reductions are being effected to the electricity and water tariff regime, hastily announced in October by Government. But most of us are not ready to be taken for a ride on this issue.

GRTU continues to insist that the truth is that figures are being played about. In real terms most of the changes that are being announced mean nothing.

The changes that are being presented are only cosmetic. The truth remains that families and businesses are, as a result of the new tariffs are being forced to pay up to 164% over current bills. The percentage is higher if the last bill you received is the one with 55% surcharge and not the latest   incorporating the 95% surcharge. The bills with the 95%surcharge are by far the highest electricity bills ever received by any family in Malta. The new, stiff higher percentage increases on these latest bills are nothing but highway robbery.

Another important basic truth is that Government is expecting to collect annually for water and electricity a staggering total of €359milion.

This exceptional amount is being demanded at a time when the economy of Malta is already going though recession. Official statistics may not as yet say so but the indications GRTU has from various sources is that the second part of the last quarter of 2008 is not only seeing no growth but reflects a diminishing economy. The situation will get worse by the end of the first quarter and by the second quarter. It is definitely not the time for Government to impose utility charges that are absolutely beyond

the paying capacity of most families and businesses.

GRTU says it load and clear: Stop this nonsense.

For our members to understand exactly what we are complaining about we are publishing some important figures in addition to this release.

The increases for new installations and also meter rentals are also exaggerated and therefore exorbitant beyond anyone's, be they householders or commercial applicants.

GRTU is interested in utility payments due from households. While the vast majority of business operators operating on the local market look-up to GRTU for guidance and it is GRTU's primary task to make proposals on behalf of enterprises, households represent for businesses their major consumer base. Households disposable incomes represent the livelihood of most local enterprises and when utility tariffs bite hard, that's so much million less available for consumption.

GRTU represents practically all the local enterprises who are being forced to carry the major burden of electricity increases and is therefore more than keen that enterprises do not suffer the double stroke of loss of profits due to unjustified increased costs and falling demand due to falling disposable income of householders.

Now that the economy is rapidly entering a bad phase, the sign of which is already being felt by rapidly falling sales and increased unemployment, Government has bold decisions to take.  GRTU said load and clear on budget day that the budget speech was not bold enough and that Government will shortly have to re visit the strategy behind Budget 2009. The time of that review is now!

Government should stop these Electricity and Water Tariffs charade and immediately offer to consumers decent rates that are not only below the charges being promoted now but substantially below the 95% surcharge tariff levels. On average GRTU expects at least a 25% reduction on all tariffs last published as model 6.1. Once this issue is behind us Government should concentrate fully on a programme on capital investment to revamp the Maltese economy before it is too late.