Eco-re­duc­tion on elec­tric­ity tar­iffs ex­plained

The Malta Independent on Sunday - - DEBATE & ANALYSIS - Nikita Zam­mit Ala­mango Se­nior Man­ager ARMS Ltd

With ref­er­ence to the let­ter en­ti­tled “ARMS Se­nior Man­ager drops an eco-re­duc­tion clanger (TMIS, 7 Oc­to­ber), kindly find our right of re­ply be­low:

Dur­ing the pro­gramme “IlPolz taċ-Ċit­tadin” aired on Radju Malta on 17th Septem­ber, a ci­ti­zen asked how ECO re­duc­tion is com­puted. For the ben­e­fit of this ci­ti­zen and other lis­ten­ers in­ter­ested in the same query, ARMS Lim­ited would like to clar­ify through the fol­low­ing ex­pla­na­tion.

The ECO re­duc­tion is com­puted as fol­lows: one per­son that does not con­sume more than 2000 an­nual elec­tric­ity units, ben­e­fits from 25 per cent on con­sump­tion. In case of more than one per­son, where each per­son does not con­sume more than 1750 elec­tric­ity units, the ben­e­fit is 25 per cent on the first 1000 an­nual elec­tric­ity units and 15 per cent on the re­main­ing 750 an­nual elec­tric­ity units.

There­fore, one can­not sim­ply gen­er­alise that the eco-re­duc­tion is al­ways 25 per cent since this would de­pend on the to­tal con­sump­tion for the pe­riod con­cerned. Dur­ing the afore­men­tioned ra­dio pro­gramme, ARMS Se­nior Man­ager clar­i­fied the dif­fer­ence be­tween the way eco-re­duc­tion is cal­cu­lated and ex­plained the re­duc­tion in tar­iffs of 2014 and 2015 re­spec­tively, which did in fact re­flect an av­er­age of 25 per cent re­duc­tion on the to­tal bill.

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