Enemalta is fined by Mepa
Amount of the fine still undisclosed
Enemalta will be fined for having overrun the 20,000 operational hour limit of its power station in Marsa, more than six months after the infringement was first logged by the Malta Environment and Planning Authority.
The decision to slap the beleaguered energy company with as yet undisclosed fines was based on “recent data” showing three of the power station’s four energy generating plants had overrun their allocated hours of use, Mepa said.
It had said the same thing when, on July 28, 2011, it announced that it was “assessing the situation and appropriate actions, including further mitigation measures, which may be undertaken by Enemalta due to non-compliance with the permit”.
The permit in question allowed Marsa power station to generate electricity at higher emissions levels than those allowed by EU law for up to 20,000 operational hours, starting from January 1, 2008. Six months later, a Mepa board meeting has decided that Enemalta’s infringement warrants being financially penalised, although it has yet to disclose the amounts.
The exact amounts are yet to be determined over the coming weeks, with a Mepa statement noting that the penalties would reflect “the seriousness and duration of the offence”.
Delays in bringing the Delimara power station extension on stream and setting up the electricity interconnector between Malta and Sicily have left Enemalta with little option but to continue running the aging Marsa power station.
Half the power station is due to be switched off in June, when the Delimara extension becomes fully operational. Output from its remaining two plants will be progressively reduced until the interconnector is scheduled to come into operation in October 2013.
Reacting to the fine, Enemalta reiterated its commitment to ensuring a stable supply of electricity to homes and businesses. It referred to “mitigating measures” it had taken to cut emissions from its Marsa plant, including the use of less polluting fuel and boiler modifications designed to reduce emissions.
Former Enemalta chairman Robert Ghirlando feels the fine was unfortunate. “It’s a bit like kicking a dog when it’s down. Ultimately, the money will be transferred from one government entity to another, so not much will change there. It will appease some people but, given Enemalta’s financial problems, it’s not a very helpful measure.”
An engineer by profession, Prof. Ghirlando felt the fine could have been avoided had infrastructural investment been made earlier.
“We were already looking at the possibility of having a Delimara extension when I was chairman. But such investment is hefty and takes time, so it’s easier said than done,” he said when contacted.
News of the Mepa-imposed fine rounds off a difficult week for the national energy provider. Amid questions concerning modifications costing €100,000 to two Delimara boilers, Enemalta received word that Standard & Poor’s had downgraded its credit rating.
With €600 million in the red, a €200 million bill for the electricity interconnector still due and with electricity tariffs already high, Enemalta is in dire financial straits.