Enemalta's fuel bill doubles since 2004

Enemalta expects to spend Lm80.6 million on fuel in the financial year which ends in September, double what it spent in the year up to September 2004 and Lm26m more than last year.

The corporation's estimates and annual report, tabled in Parliament yesterday, show that the corporation is projecting a loss of Lm900,000 this year (loss 2004/2005: Lm7.4 million).

Losses will be registered by the electricity and gas divisions while the petroleum division is expected to show a profit.

The corporation said its loss would result despite various improvements including partial restructuring which would yield a saving of Lm623,000, debt restructuring (savings of Lm1.8m) reduction in theft (Lm2m) and savings from other expenses such as telephones, legal fees, stationery and similar items (Lm267,000) and a government subvention of Lm21.7 million.

The electricity division is projected to lose Lm7.2 million (from Lm17.8 million in the previous year) notwithstanding the increase in the power surcharge.

The gas division will lose Lm3.7 million before the government subvention, which will increase to Lm2.1 million. The petroleum division will make a profit of Lm2.9 million, down from Lm6.3m in 2004/2005 due to a transfer of profits to excise duty.

The annual report shows that demand for electricity continued to increase, albeit at a slower pace over the past year. Peak demand was 411MW on August 3, whereas the peak winter demand was 402MW on February 17, 2005.

Development projects over the year included the installation of equipment at a new electricity distribution centre at Kirkop, due to be operational this month. The corporation started the installation of equipment at a new disribution centre in Marsascala to reinforce the high voltage network to Marsascala, Zejtun, Zabbar and Xghajra.

Problems encountered in 2004 in the excavation of a tunnel to link Marsa with Delimara persisted and slowed down the progress of works. Most of the tunnel is now ready except for the last 400 metres where its walls have to be extensively reinforced.

Enemalta has also awarded a contract for the excavation of tunnels linking the existing tunnel at Sta Venera to Kappara and eventually to San Gwann. These tunnels will be used for the installation of 132kv cables between the power stations and a new Kappara dstribution centre.

The corporation over the year installed nearly 7,000 new electricity services to clients. More than 15,000 new meters were installed, some of them to replace old equipment.

Over 8,000 surprise inspections were made to counter theft of electricity and 305 meters were found tampered and referred to the police for investigation.

Sales of petroleum products dropped by eight per cent from the previous year. The sale of kerosene alone dropped by 67 per cent.

The combined consumption of gas oil and diesel dropped by 4.7 per cent over the previous year sustaining a reduction of the total gas oil and diesel consumption which had dropped by 17 per cent in the previous year.

Sales of LRP and unleaded petrol rose by 0.3 per cent although sales of LRP alone declined by 16.2 per cent.

Sales of liquid petroleum gas reached a record 19,265 tons, up 8.1 per cent.