A total of seven companies have been shortlisted for the Integrated Utilities Business System Strategic Partnership for Enemalta and the Water Services Corporation,
The partnership will, for starters, provide for new control systems and a state-of-the-art billing process including a new water and electricity metering system for Malta’s households and businesses.
While the actual contract is multifaceted and envisages a complex requirement on the part of the bidding companies, the strategic partnership will see the winning company operating certain parts of the utility-providers’ businesses, mostly back office and billing operations, as well as supplying equipment.
New developments in metering technology, such as “smart metering”, are expected to be implemented across Malta – eliminating the need for visits by meter readers. Such a system would, for example, use a combination of power line carrier and radio technology to provide for two-way communications between utility headquarters and the water and electricity meters themselves.
The new system will allow Enemalta and the WSC to crack down on theft and leakages, which amount to over 17 per cent of all water and electricity generated.
The water and electricity systems are riddled with theft and leakages, which range far above the industry average of four to five per cent.
Speaking recently, Minister for Investments, Industry and IT Austin Gatt explained how recent figures demonstrate that a total of 17.7 per cent of Malta’s generated electricity went missing – a figure that includes electricity lost through theft, cables, substations and other technical faults. Of the total, Dr Gatt estimates that that 12 to 14 per cent is of electricity used in Malta is stolen and that Enemalta would save some Lm7 to Lm9 million if such theft were to be completely eradicated.
During 2006, Enemalta carried out 250 meter inspections per week and found that seven per cent of meters had been tampered with.
The contract notice, issued in November 2005, called for competent international companies to express their interest in a strategic partnership for the design, supply, implementation and operation of specified business processes and systems.
The new utility business systems, as called for in a tender issued by Enemalta, will replace infrastructural elements and support systems for both State and utility companies.
The contract, which will run for an initial period of five years, is currently in the RSP stage of the awarding process in which shortlisted bidders have been asked to present detailed proposals by the beginning of April.
One bidder, British multi-billion euro multinational LogicaCMG, speaking at an informal press briefing this week, said it was confident it has found the solution to Malta’s utility woes.
Business development director Ken Whittaker said the company is “working hard on a top quality proposal. But with a total of seven shortlisted companies, it should be a tough decision and there will be a lot of work in selecting the winning bid”.
Such new technologies, he explained, will improve the overall utility services to the public, as well as savings on high losses incurred through theft and leakages that represent a recurring and unnecessary expense for the government and consumer alike – which are expected to compensate for the capital expenditure.