Eco-reduction on electricity tariffs explained
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.