6th May 2018 - Figures confirm 25% savings in energy bills

Except for the reduction of tariffs, the formulation and calculation of water and electricity bills issued by ARMS Ltd has remained unchanged since the current system was established in 2009.

The only changes to utility bills during the last 10 years were the changes in tariffs, with an upward revision in 2010 of 30%, and a 25% reduction in 2014 and 2015 for residential and non-residential customers respectively.

In reaction to media reports alleging changes in billing systems, ARMS Ltd clarifies that no such changes have actually been implemented in recent years. The current billing system, including the consumption bands and the billing periods, are still the same as those introduced through the 2009 amendments to the Electricity Supply Regulations. This system was established to encourage customers to decrease and stabilise their energy consumption, and their carbon footprint, by consistently lowering their consumption throughout the year. Customers who reduce their energy consumption and consistently remain within the lower consumption bands benefited through relatively cheaper tariffs.

The 2014 and 2015 tariff cuts have led to substantial reductions in energy bills for all customers. Two-monthly electricity consumption cost based on actual consumption for a typical two-person household in 2017 are 30.40% cheaper when compared to the same bill, with the same actual consumption readings and calculated in the same way, but using 2013 tariffs. The reduction percentage is similar for three-person households, 29.9%, for four-person households, 28.97% and for five-person households, 25.37%. On the other hand the water bills have seen a reduction of 5% in 2014.

As a result of the lower tariffs, it has become more affordable for customers to switch to electricity for certain energy-intensive household requirements, such as heating and cooling. In fact, electricity demand increased by 6% in 2017 and more than 3.5% this year to date.

Through its ongoing improvement procedures, during the last few years ARMS has drastically decreased the number of bills based on estimate consumption readings. In fact, the company is currently issuing 78% of utility bills based on actual readings, up from 48% in 2013. This improvement is gradually eliminating the difficulty of receiving bills based on estimate readings, which make it more difficult for customers to assess their changing consumption patterns and optimise their energy use.

Through several support channels, ARMS Ltd will continue assisting customers who may have difficulties in their utility bills. The Company is also fully cooperating with the local authorities in any ongoing evaluations of the 2018 billing procedures, with a view to constantly increase the quality of service to all its customers.