Enemalta expects losses to mount

Enemalta expects to make a loss after tax of Lm3.3 million in the current financial year, up from Lm1.6 million in the financial year which ended on September 30, 2003.

Figures given in parliament yesterday show that the main reason for the worsening financial situation are losses by the Electricity Division, which will this year soar to Lm11 million (before tax) from Lm9.5 million in 2002-2003.

The losses will increase even though the projected revenue from the sale of electricity is expected to be Lm58.5 million from Lm55.3 million in the year 2002-03.

The Gas Division is expected to make a loss of Lm948,000 this year, compared to a loss of Lm908,000 in 2002-03.

The Petroleum Division is projected to show a profit before tax of Lm6.8 million but that will be down from almost Lm8 million last year.

The financial estimates were tabled by Public Investment Minister Austin Gatt along with the corporation's annual report 2003.

The report shows how an upsurge in the use of air conditioners saw maximum demand in summer exceed that in winter, reaching 397 megawatts, up 30 megawatts over the previous summer peak.

During the summer, open gas turbines had to be run for an extended period to meet demand, clearly showing the need for additional generating plant to maintain a reliable supply.