The energy price hike has accompanied us for too long to remain “temporary” in nature. High fuel prices are a new reality which we must collectively face; it therefore stands to reason that we must respond to the challenges they pose with renewed vigour. This can only be achieved by creating a permanent mechanism to replace the current established system. New proposals have been put forward, aiming at addressing these realities. The very act of discussing such proposals bears an inherent acknowledgement that we are not above the turmoil which has engulfed the world over.

The common underlying factor addressed in the proposed options is that of recovering the full cost of the generation and distribution of electricity. This is particularly crucial in light of the e450m which is to be invested by Enemalta in this sector in the coming years.

The new concept which is being introduced is that, rather than continuing the subsidisation of Enemalta on behalf of the people who have qualified for subsidies, the government would now be paying the customer directly. The 30,000 families who currently do not pay the surcharge will, in turn, remain protected through a government subsidy. The proposed tariffs are based on how much it costs Enemalta and the Water Services Corporation to generate and distribute electricity and water.

The social partners have until 18 October to give their feedback on the proposed tariffs or else draw up their own counter-proposals. A final decision will be taken by 24 October and will apply retrospectively from 1 October.

The eco-reduction incentive which is being proposed as part of a new electricity tariff structure aims at encouraging people to save energy. It heralds the introduction of a new system which must be spearheaded by a change in mentality and which may seem hard to achieve at first, but which can in turn render effective and positive outcomes both to our pockets and to our lifestyles. By saving energy, we pollute less and save money in the process. This concept also falls in line with the polluter-pays principle, that is, the idea that consumers should pay relative to their consumption. This principle should continue to raise awareness that energy is indeed not to be taken for granted, both in terms of cost, and in terms of environmental protection.

This year, the government had handed out e43 million in subsidies to Enemalta, which amounted to 0.8 per cent of GDP, consequently derailing government deficit estimates for this year somewhat. We need to adapt structurally to this major change in the rules of the game.

The new structure should look at creating incentives that reward people who consume electricity with care and penalise people who choose to consume more energy than is required, or is reasonable.

This is not simply a matter of social justice but also an incentive to help us make the effort to consume less energy and contribute less to global warming.

These new policies look to give more transparency in meeting the international cost of fuel.

The new incentives to reduce energy consumption and branch out to cleaner energy are perhaps the most important changes. Much has been said about the new proposals, however it is clear that they are still proposals, and that the government will take its final decisions following extensive consultation meetings and the submission of proposals by the constituted bodies.

Spurred by rising prices, we are beginning to change the way we use energy. We must maintain this trend, particularly since this new fuel paradigm will not abate any time soon. It would also ultimately be illogical to abort this essential modification just as it would be gaining momentum.

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