In spite of rising temperatures, the high surcharge on energy bills is forcing domestic consumers to think twice about purchasing air-conditioning units, The Malta Independent has learnt.
Speaking to this paper, sales managers from well-established companies selling appliances said the energy consumption of units on sale had become a major factor when finalising a sale, and a significant number of consumers were also asking for the traditional fan, rather than an air-conditioner.
Not all sales managers were downbeat however; with some reporting solid bookings for the coming weeks.
“All of our technicians are booked for the coming two weeks and we expect the trend to continue increasing as the weather gets hotter. Although sales are still not as good as last year, we are quite satisfied with the outcome so far,” one sales manager told The Malta Independent.
However, another sales manager said the electricity surcharge was definitely making people take longer to decide before buying an air-conditioning unit.
Another interesting but expected trend in the white goods sector is the switch from electric cookers and hobs to appliances operated by gas. People are going for this option because gas is cheaper than electricity, and they are prepared to fork out capital knowing that in the long-term they will be repaid.
“The general trend for A/C units is that sales pick up in May but since we only had two or three extremely hot days, the results haven’t been that good. People are also much more concerned about the electricity consumption of the unit they are buying and a significant number of clients have resorted to buying fans because their budgets are tight,” the sales manager added.
Power consumption appears to have become one of the major factors in sales, although another company that deals mainly in the industrial and commercial field said that it has not been badly affected.
“We are doing pretty well, although demand has dropped slightly in the domestic sector due to the surcharge. Consumption has become practically the most important factor for domestic customers and this is obviously having an effect on sales in this area. Still, the commercial sector has not been affected that much and fluctuations in demand have been few and far between,” the sales manager explained.
The general trend appears to be a decline in sales overall. However, prices of A/C units have fallen substantially over the last few years, with a starting price of around Lm200 for a 12000 BTU unit.