ARMS to open two regional offices

The reductions of utility bills coming into force next March will mean an average reduction of 25% in electricity tariffs for Maltese households.

The "progressive measure", as dubbed by energy minister Konrad Mizzi, will allow up to 90% of families to enjoy a reduction of up to 30% in current rates.

"The measure rewards those who save the most and those who consume the least will enjoy 35% reduction," he said in a presentation to the press on budget measures, in Valletta.

For example, a household of one person consuming 1,980 units would start paying €83.68 less resulting in a bill of €155.41.

A family of two, consuming 3,300 units, would enjoy a reduction of €132.28, reducing the bill from €432.54 to €300.24. A family of three could save up to €188.58 when consuming 4,950 units where a household of four consuming 6,600 units would see a 27% reduction, from €891.05 to €653.76.

"Thanks to the power purchase agreement, electriricty prices will remain stable until 2020," Mizzi said, adding that the first €25 million reductions to come into force next year will be taken on by the private consortium, Electrogas.

The Electrogas consortium will provide a gas supply and electricity generation at a new 200MW plant in Delimara. The consortium is made up of Gem Holdings, Siemens, Gasol plc, and Azeri state company SOCAR.

Asked whether the tariffs as announced will remain as are until 2020, the minister cautioned that it would be the energy regulator that will determine price.

The minister also announced that in 2014 the government is set to open two ARMS Ltd regional offices, one in the north and the other in the south of the island.

"We were not happy with how ARMS Ltd was functioning. We found some 60,000 pending bills and 30,000 others which had been returned because they had been sent to wrong addresses," the minister said.

In order to improve the billing company's efficiency, two offices will be opened. Mizzi explained that the government had first wanted to sort out the entity's operations before moving on to building on the service.

Asked whether the government would be doing anything to address the problems faced by EU expats living in Malta - who are still forced to pay domestic as opposed to residential rates - Mizzi said the "pressing issue definitely required immediate address".

"We have met representatives of the foreign residents and next week we will be holding another meeting. The government's solution must involve Identity Malta and we are confident that a solution will be found... common sense must prevail," he said.

On water conservation, Konrad Mizzi said the government was in the process of initiating public consultation when asked whether it intended to charge industries on water extraction from boreholes.

"What I can confirm right now is that farmers will not be made to pay. On the other hand, we look forward to start working on the 'new water' project to be used by industries," he said.

The government plans on treating and polishing sewage water. The treated water could be both used by the industries and also to replenish the water table.