Government to propose electricity surcharge

Investments Minister Austin Gatt will tomorrow brief the Malta Council for Economic and Social Development about the government's options on higher water and electricity bills to make good for the explosion in oil prices.

The Cabinet yesterday morning discussed a proposal which will be presented to the MCESD tomorrow.

Sources said the proposal revolves around introducing a surcharge which would be clearly indicated in the bill, so that if oil prices go down the surcharge would be lowered or removed.

The surcharge is meant to make good for the total amount Enemalta is losing - reported to be in the region of Lm9 million - as a result of oil price increases. Based on the 200,000 accounts, the surcharge would therefore amount to an average of Lm45 a year per account.

The sources said the surcharge would be worked out as a percentage across the board and linked to consumption.

One of the options under discussion is for water not to be subject to a surcharge, so there would be no change in the price of water.

In a parallel development, the Water Services Corporation, which issues water and electricity bills and collects payments, will no longer negotiate repayment programmes with those who have outstanding bills.

A deadline will be given for payment to be made, after which the services would be disconnected. Those unable to pay would then have to go to the Finance Ministry at Castille and loan arrangements would be made for those who have not been able to pay, sources said.

The reason behind this move, the sources added, was that repayment programmes were often not being honoured by consumers.

There are an estimated 20,000 pending bills.