Enemalta replacing 10,000 meters annually to curb power theft

Enemalta is replacing some 10,000 electricity meters every year as part of its efforts to curb the theft of electricity, Economic Services Minister Josef Bonnici has told parliament.

He said the new meters were practically tamper proof and recorded any attempts to tamper them.

Enemalta over the past year recovered Lm1.5 million in revenue by reducing the losses it used to make on electricity, mostly through theft.

The minister was winding up the debate on the estimates of Enemalta Corporation.

Earlier, Opposition finance spokesman Leo Brincat said that in actual fact, Enemalta over the past year registered a loss of Lm11.1m if one were to take into consideration the Lm3.3m in deferred tax assets.

He said that the projected cash flow for the two years ending at the end of September this year was of Lm5.6m together with Lm13m additional financing, despite the fact that the cost of petroleum products was to decrease.

Revenue reserves were down by Lm4.5m.

Mr Brincat said that while the cash at bank had decreased, the interest burden on bank loans had increased.

He asked why no electricity bills were issued for several months.

Now that the regulatory function had been transferred to the Malta Resources Authority, what savings had the corporation registered?

The authority had still not given its agreement for the introduction of a new tariff system, already agreed with the FOI and the MHRA, for higher users of electricity. Was there any technical or logistical problem?

Mr Brincat said that it was worrying that Enemalta did not have any success in tendering for the installation and maintenance of street lighting for local councils. Was this by design or by default?

Turning to Malta's possible membership of the European Union, Mr Brincat said that the EU's environmental requirements would impose a heavy burden on the corporation. The burden would be exacerbated if fuel distribution and importation activities would be hived off from Enemalta. The opposition was not against Enemalta becoming more environment-friendly but, the corporation would have a slimmer chance of generating funds to meet future challenges.

What was compliance to EU standards going to cost?

What was the corporation's future strategy with respect to diversification, manpower levels, and medium-to-long term privatision plans? What would be the effect of the elimination of subsidies on the consumer?

Mr Brincat referred to the imposition of VAT on energy services and asked whether in future, this tax would be paid by the consumer.

Mr Joe Mizzi, opposition spokesman on the environment, asked when the planned fuel vapour traps at Birzebbuga would be installed.

What had happened to the promise that the Delimara power station would generate enough electricity to supply all of Malta?

The Marsa power station was not complaint with EU environmental standards, yet, were it to close down, Malta would have serious problems. Once the deadline for compliance with the EU standards passed at the end of this year, would Malta have to pay fines? How would the upgrading of the power station be funded?

It was unfortunate, Mr Mizzi said, that Enemalta had dragged its feet with regard to measures for cleaner emissions from the Marsa station. Indeed, much remained to be done.

Agriculture Minister Ninu Zammit welcomed the way that fuel prices were now adjusted according to market conditions, saying this protected the corporation and also enabled consumers to benefit when oil prices dropped.

He welcomed the publication by MEPA of terms of reference for the gas bottling plant to be transferred from Qajjenza to Benghajsa, away from residences.

Reacting to opposition criticism, Mr Zammit said that in 1987 Malta hardly had any spare electricity-generating capacity and there was a crisis even when a small boiler developed a fault resulting in power cuts.

The Nationalist government immediately made massive investment in the sector, building two 60MW generating plants at Delimara which could be operate using both fuel and gas.

Many millions of liri had also been invested in the power distribution system, particularly through the building of many distribution centres. A new power cable had also been laid to Gozo. A tunnel for cables was bored between Marsa and Mosta. Another tunnel would link Delimara with Marsa and two others were planned to the new hospital and Valletta and to Marsascala. This would make the distribution system far more secure than the unsightly cables on pylons.

Winding up, Economic Services Minister Josef Bonnici said measures taken at Marsa power station, including the use of cleaner fuel and the installation of precipitators, had drastically reduced harmful emissions. That was why the government was confident of reaching the compliance standards set by the EU. Measures which were now being taken included replacement of the fuel injectors.

Prof. Bonnici said the EU's requirement that Malta should have 90-day fuel would guarantee the island's fuel supply for three months.

Replying to Mr Brincat, he said the government believed that, with time, elements of Enemalta's activities could be liberalised, particularly with regard to fuel imports, but there were areas where liberalisation would probably not be possible, such as in the distribution system.

Prof. Bonnici said that as part of its efforts to curb theft of electricity, Enemalta was replacing some 10,000 electricity meters every year. The new meters were practically tamper proof and would record any attempts to tamper with them.

The government was encouraging high electricity users in industry to opt for the new tariffs, which would be of benefit to them.

Turning to fuel prices, Prof. Bonnici said that under the new system, regular and unleaded petrol were cheaper than 2001 while diesel was dearer and there was a slight shift in the price of kerosene.

Referring again to Mr Mizzi's remarks, Prof. Bonnici said Lm200,000 had been allocated for the provision of vapour traps.

The estimates were approved with 32 votes in favour and 19 against after a division.

The introductory overview by Prof. Bonnici and the reaction by Labour MP Louis Buhagiar were reported yesterday.