Comparing the new tariffs with the old tariffs
26 July 2009
Much has been said about how more expensive the new tariffs are than the older tariffs. Percentages have been thrown around the media, but these were
absolutely misinforming, since the percentage increase depends greatly on the rate of your consumption. It is not possible to give a figure that applies to
everyone.
Many customers have been using the Malta Utility Bill Calculator™ to compare the new tariffs with the older ones. Even when you say "older ones",
this is misleading, since, older by how much? Since November 2005, tariffs have been calculated using a fuel surcharge mechanism, which was revised,
initially, every 2 months. Typically, when people want to compare electricity tariffs with older ones, they are referring to tariffs between July 2008 and
September 2008, when the fuel surcharge mechanism was 95%. If you want to go backwards, between August 2007 and June 2008 fuel surcharge was 50%, so you will
obviously get different results.
But how do you measure your percentage increase? Simple. If, say, you are calculating new tariffs for the period January 2009 - February 2009
(31 + 28 = 59 days), all you need to do is to change the period to one between July 2008 and September 2008, when the old tariffs applied. Make sure you
specify a period covering 59 days, e.g. 1 July 2008 - 28 August 2008. This will give you a theoretical (what if) answer as to how much you would have been
charged should the tariffs hadn't changed as from 1 October 2008.
E.g. Residential, Single Phase, 2 Persons, Period 1 Jan 2009 - 28 Feb 2009, Water Consumption 10 units, Electricity Consumption 1000 units.
Calculator results in €293.65 total bill.
Now, change the period to 1 July 2008 - 28 August 2008. Calculator computes bill totalling €165.18.
Thus, with this configuration, it implies that the tariffs have increased, since 1 October 2008, by €293.65 - €165.18 = €128.47 or up to 178%. Check it
out with your configuration, since you might have some better news than this!