Finance Minister Tonio Fenech has described the struggle to reverse Enemalta’s economic fortunes as “the nation’s greatest challenge” and admitted that halting its loss-making trends will be difficult.

In an interview with The Times, Mr Fenech said that a refinancing plan covering two-thirds of the company’s €600 million debt would help alleviate the corporation’s bank balance, while a portion of tariff revenues would be used to pay for the €200 million cable interconnector between Malta and Sicily.

The minister was adamant that electricity tariffs would not be increased, saying that doing so would not be “responsible” and could backfire spectacularly by stifling economic growth.

He also again reassured Enemalta’s workforce, saying that no redundancies were expected as part of the company’s restructuring. Any surplus workers would either be redeployed, given work in another government entity or offered an early retirement scheme.

Parts of the Marsa power station are likely to be kept to safeguard Malta’s electricity supply in case of a national emergency, the minister revealed. The aging power station has overrun its operational lifetime and will start being shut down this June, when the Delimara power station extension becomes operational.