€1,700 per year: That is how much more the government says the average household would have to pay for energy if it was not being subsidised.
But how do the utilities subsidies work?
According to a breakdown of the utilities savings, seen by Times of Malta, the savings differ based on the size of household and on their type of consumption.
The €1,700 figure, described as “conservative” by government sources, was drawn up by officials at the Energy Ministry and includes savings on energy bills as well as fuel bought at the pump and the price of gas for domestic use.
Prices for energy have skyrocketed as a ban on imports of Russian oil has coupled with spiralling cost of EU gas.
Energy Minister Miriam Dalli said the savings are based on the consumption of an average Maltese household.
“One glance at our European neighbours can show you how serious the repercussions of increasing electricity bills can be,” Dalli said.
“In Italy, some are facing electricity bills that have increased fivefold. According to our very conservative estimates, we are giving families at least €1,700 a year [in energy subsidies], which is equivalent to an average monthly wage.”
According to a recent study, Malta currently has the third cheapest electricity prices in Europe, with households paying 13c per kilowatt hour.
In the UK, energy costs 51c per kWh, and in nearby Italy, consumers are paying 46c per kWh.
One glance at our European neighbours can show you how serious the repercussions of increasing electricity bills can be- Miriam Dalli
A kWh is the amount of energy you would use by keeping a 1,000-watt appliance running for one hour.
Here is how the different savings work out.
Single person
Someone living alone is estimated to be saving at least €1,022 per annum on energy.
Their domestic electricity bill is €382 cheaper over the course of 12 months.
The largest saving, however, is at the fuel pump, where a single person is paying €595 less for a year’s worth of diesel than they would without the subsidy.
When it comes to domestic gas, a single person is estimated to pay €45 less to warm up their home for the year.
Family of two
The average couple meanwhile is saving a total of at least €1,392 through the different subsidies, the government estimates.
Their annual electricity bill is €573 lighter and between them, they are saving €743 on diesel at the fuel pumps.
Finally, when it comes to gas tanks, the Maltese couple is saving €75 annually.
Family of 3 or more
The final category, a family of three or more, is expected to save €1,699 – rounded up to €1,700 – through the subsidies.
The greatest saving will again come from the price of filling up their car with fuel. This ‘average’ household is estimated to save €892 on diesel over the course of a year.
They will save €90 on gas cylinders and their year’s electricity bill be €717 cheaper.