Unions could step up actions on energy rates

Unions opposing the new water and electricity tariffs could step up their actions after they meet the regulator on Friday as the saga surrounding the new rates was described as "total chaos".

It all depends on whether Prime Minister Lawrence Gonzi will accept to meet the 11 unions, which joined forces to fight against the increased rates announced late last year.

The unions have already called on people not to pay their bills in the first 45 days, the time window in which bills have to be paid before penalties are imposed. Many families have already received their bills.

During a press conference at the Malta Union of Teachers' headquarters in Valletta, where, ironically, there was a power outage at the time, the unions did not say what actions they were planning but said nothing was being excluded.

The general secretary of the General Workers' Union, Tony Zarb said the unions set out their strategy during a meeting on Monday.

The unions said they had no confidence in the recently-published report by auditing firm Deloitte, which concluded that the model used in the drawing up of the new energy rates was correct. The report also established that the calculations made were based on assumptions.

On this point, the president of the University of Malta Academic Staff Association, Victor Buttigieg said the regulator approved the tariffs without even knowing how many families will be benefitting from the eco reduction.

"Things were done in an amateurish way and there is total chaos," MUT president John Bencini said.

Originally, Dr Gonzi had told unions 73 per cent of families will benefit from the reduction but this was later contradicted in a report by KPMG, which said it was actually 73 per cent of accounts (which would include the bill for a garage, for instance). "The situation is pathetic. Even a child in kindergarten would realise that the right hand does not know what the left hand is doing," Mr Bencini said.

Dr Buttigieg asked how the Malta Resources Authority approved the tariffs on a preliminary review. He said the situation was even more worrisome considering that Enemalta enjoys a monopoly, making the regulator's function even more important.

Moreover, the report does not mention water tariffs.

"How can one impose tariffs which the regulator was not able to properly verify," he asked, adding that if the tariffs are not just, they should be changed.