Editorial

Even though there are now indications that the water and energy rates will be revised downwards when the time for the promised revision comes up in March, a number of trade unions are beating the war drums again and the Labour Party, seemingly wishing not to be outdone by anyone, has presented a motion in Parliament contesting the tariffs and complaining of poor practices at the energy corporation. There is then the very important matter over the reliability of the figures on which the tariffs are based. And yesterday, rather out of the blue, the Malta Resources Authority announced it had carried out a study on the new bills' impact on domestic users, something the unions long ago questioned. The study will be presented to the social partners.

All in all, it is a convoluted, muddled issue that reflects lack of proper planning and handling on the part of the government.

Eleven unions, still stung by the Prime Minister's resistance to meet them again over a clarification they sought regarding entitlement to the eco allowance, speak of "total chaos", of amateurism and of a pathetic situation.

In the wake of the controversy over the reliability of the figures, their reaction is quite understandable though they could very well do more harm than good if they let their passions dictate their action. The regulator has come to figure prominently in the story too, for the latest developments in the issue expose serious weaknesses.

An auditing firm carrying out a study of the tariff structure found that the model and methodologies used in the drawing up of the rates was correct, but when the report was issued, the accuracy of the data used to compile the model had still not been verified and tested. It therefore recommended that the authority test the data and the resulting tariff structure. One economist held that both the report commissioned by the energy corporation and that commissioned by the regulator had based their respective exercises on a number of questionable assumptions and unaudited financial data given by the corporation.

Few, except the unions and economists, would have dared suspect the correctness of the data used in the computation of the new rates. The Ministry of Resources and Rural Affairs, reacting on behalf of the regulator, said that on the basis of the testing and review work undertaken so far, the authority was not aware of any discrepancies, uncertainties, inaccuracies or unrealistic assumptions that would undermine the reliability of the data used in the report. So, what had made the firm of auditors commissioned by the regulator say in its report that the testing and verification of the accuracy of the data provided by the corporation had yet to be carried out?

Clearly, this, and the matter over the eco reduction, would need to be cleared up. The public has been left wondering why so many loose ends have cropped up in such a short space of time.

As if to muddy the waters even further for the energy corporation, the National Audit Office has recently exposed shortcomings in the purchase of personal computers by the corporation. In the auditor's opinion, the matter revealed not only weaknesses in planning and control but also lack of coordination between the component sections of the corporation.

The issue over the energy rates needs to be settled as soon as possible so that the country can move on to deal with other pressing issues.