Issue link: https://maltatoday.uberflip.com/i/1418522
9 maltatoday | TUESDAY • 12 OCTOBER 2021 BUDGET2022 ENERGY COST OF LIVING JAMES DEBONO THE government is committed to introduce a new billing sys- tem for water and energy bills, which is to be formulated in a way which does not have a nega- tive impact on any client. The new system will address the main shortcoming of pres- ent system, in which consum- ers end up being charged at higher rates simply because 'cheap' unused units would have been lost during periods of lower consumption. This is because consumption tends to peak during the summer months and around the Christ- mas period. In the new billing system an- nounced in Budget 2022, the consumer will be able to save unutilised units during periods of low consumptions which will be carried over to periods of high consumption, thus re- sulting in fairer and lower bills. The system will be designed in a way which adresses loss- es in the eco-reduction or the feed-in tariff for those who have solar panels. But the budget includes no commitment on giving a refund for consumers overcharged in past years as promised by the Opposition, while blaming the current billing system on the PN which introduced it in 2009. In his speech, Clyde Caru- ana insisted that the system was unchanged in subsequent years. A report by the Auditor Gen- eral found variances of between €10.74 and €468.90 in ARMS pro-rata calculation of bills, when compared to the annual calculation method. The Auditor General said these "extra charges" could be costing consumers €4.6 million on electricity bills. Water bills, which are calculated using dif- ferent tariff bands, also varied by €1.9 million between the pro-rata billing used by ARMS and the annual method. The budget refers to forth- coming investments in the en- ergy sector including the sec- ond interconnector and studies on hydrogen as a future source of clean energy. More studies on the technical and financial feasibility of hydrogen will be conducted in 2022. But the budget makes no ref- erence to large-scale offshore wind or solar farms which al- so feature in the government's low carbon strategy. The budget also refers to further investment in the ex- tension of the 'new water' net- work, through which water derived from treated sewage is delivered to farmers. Government to change ARMS billing system Government committed to reform billing system but no refund to be given on past bills EMPLOYEES will be seeing a €1.75 weekly in- crease through the Cost of Living Adjustment (COLA), the Finance Minister Clyde Caruana an- nounced. This compensation will be granted to workers, pensioners, students and those on social bene- fits. Student stipends will also be increasing pro-ra- ta. Caruana also said the time has come for gov- ernment to protect families vulnerable to infla- tion. He said government will be meeting with stakeholders in the sector to draw up a new mechanism which works independently from the COLA when inflation rises sharply. The minister said the burden will be shoul- dered by government. COLA increase set at €1.75