As you can see in the table below, our cost of electricity works out at €0.63 per day more expensive, €0.03 per unit more expensive and €230.88 per year more expensive than it should be, if Arms / Enemalta were not to be in breach of the Electricity Supply Regulations and if we were to be billed according to the full quota of cheaper units that we are due.
Now, this analysis is the analysis of the cost for our household for this last year. Of course, it will differ from household to household and from year to year. The point is that it will be an exceptionally massive fluke if the cost with annual quotas were to match exactly the cost with pro rata quotas.
The crux of the problem is that the billing period - in number of days - constitutes part of the algorithm for calculating the cost. So - simply put - to work out the cost of the bill, the algorithm will calculate the pro rata quota of allowances, according to this number of days. If the billing period is a year, then there would be no problem at all. But because the billing period is chopped up into 6 two monthly bills, then the pro rata quotas will not be at all sensitive to the peaks and troughs of consumption over the year.
In fact, if you look at the diagram below, this, in itself, constitutes another problem. The cost of our electricity over the last year, ranges from €1.60 per day to €8.00 per day and from €0.12 per unit of electricity to €0.20 per unit of electricity.
This is problematic - who wants to have to pay bills of €401.68 for November to January and €456.08 for January to March? These bills, representing our electricity cost of 4 months, amount to 60% of the the total annual cost of electricity for our household. We were billed for the remaining 40% of the total cost over 8 months. This is simply not tenable and will create huge problems for people with cash flow issues.
You know what they say - lies, damned lies and statistics... Much was made in the 2013 PL electoral campaign, of the decrease in the cost of electricity, if PL were to be elected. Five years on, and I hope that this incorrect implementation of the Arms billing system will be fixed. I also hope all aspects of this catastrophic billing system will also be fixed - the Arms / tenant scam, the prepaid meters issue, the PV issue... It is so wrong that Arms continues to take advantage of its monopoly position.
I also wonder what Malta puts forward as its average cost per unit of electricity for households, when asked for statistics. Our average cost per unit was 16 c per unit this year. This, when we - a household of 5 - are hardly at home, have no ac and no drier. The diagram below shows the cost of our electricity if we had been allowed our full quota of cheaper units. The cost per unit, in this case, would have been 13 c per unit. Still nothing to write home about. For our level of electricity consumption, I would say that Malta must have one of the higher electricity prices. That money is not being invested in renewable energy, from what I can see. I wonder, is it financing some Azeri and Maltese politicians instead?