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Doubts cast on PL’s plan to fix electricity price and timescale

Delimara power station. Photo: Chris Sant Fournier

Delimara power station. Photo: Chris Sant Fournier

Labour’s plan to fix the price of electricity for 10 years has been questioned by a former chairman of Enemalta .

Labour proposal is not a gimmick... but 30-36 months to build and commission is more realistic
- Michael Falzon

Engineer Robert Ghirlando said long-term agreements for the sale of electricity normally included mechanisms to cater for fluctuations in production costs.

“Power purchase agreements do not normally work on a fixed-price formula but they would have built-in mechanisms that cater for fluctuations such as the price of fuel,” Prof. Ghirlando said.

The PL’s tariff-reduction plan is based on private sector investment in a new power station run on gas.

The company will operate the plant and sell electricity to Enemalta, with Labour saying the price will be fixed for 10 years.

Different models are used internationally when drafting power purchase agreements like the one proposed by the PL.

An industry expert, who asked not to be named, said a fixed price was a possibility but the operator is likely to include in the formula any future risks and price fluctuations to anticipate losses. This will probably up the price at which the electricity will be sold to Enemalta, he added.

Finance Minister Tonio Fenech put forward both these scenarios when squaring off with PL candidate Konrad Mizzi on current affairs television programme Bondiplus on Tuesday.

He insisted it was impossible to forecast the price of gas over a one-year period, let alone 10 years, unless the operator factored into the equation some form of insurance that would up the cost for Enemalta.

Mr Fenech tore into Labour’s energy plan, branding it unrealistic with timelines that were impossible to achieve.

Labour, however, is saying that the new power station and liquefied natural gas terminal, including the call for expression of interest, will be ready and commissioned within 23 months.

Yesterday the Labour leader addressed this point during a business breakfast dealing with the proposal, saying that he understood scepticism expressed by some quarters on the timeframes because the country had “become accustomed to mediocrity”.

Nonetheless, he defended the plan, pointing out that even the current administration had found ways to fast-track some permits and change local plans for prioritised projects.

However, Prof. Ghirlando said that while it made sense to replace the old Delimara plant with a combined cycle gas turbine facility, the proposed timeframes sounded “too optimistic”.

The short timeframe was an issue of concern raised by Michael Falzon, a former PN infrastructure minister responsible for the building of the Delimara power station in the early 1990s.

“The Labour proposal is certainly not a gimmick and it is interesting but I believe that a period of between 30 and 36 months to build and commission is more realistic,” Mr Falzon said.

He noted that Mr Fenech cast doubts on the estimates included in the PL plan to build the necessary infrastructure and this had to be clarified by Labour.

Another issue raised by Mr Fenech was the location of the two gas storage tanks in the artist’s impression provided by Labour of how the Delimara site will eventually look.

He said the area located for the tanks was a mound of rubble on reclaimed land that could not simply be removed without making a hefty investment – some €40 million – to strengthen the foundations.

The minister’s concern was shared by Prof. Ghirlando.

“I recall an Enemalta architect, now dead, who used to insist that the rubble mound had to remain there as a counterweight to prevent the cliff face from collapsing.”

Any infrastructural works in the area will have to take into account the stabilisation of the cliff face, he added.

Another issue raised by Mr Fenech was what he described as over-supply. He insisted the country did not need to build a new 200MW power station as proposed by Labour when the electricity interconnector to Sicily will come on line.

However, Mr Falzon said it is a question of two different policies.

“The Government will primarily rely on the interconnector to supply electricity while Labour’s proposal uses the interconnector as a secondary source of supply.”

Mr Falzon believes people are already suffering from an indigestion of figures barely two days after the proposal was made.

“Ultimately it all boils down as to whether people trust Joseph Muscat or not to deliver on his pledge.”

Issues of concern

Power purchase agreement: Labour is proposing having a 10-year agreement with the private operator to buy electricity at a fixed price. It has been queried whether this is possible with international gas prices fluctuating from time to time.

Timeframes: Labour is saying that the new power station and LNG terminal, including the call for expression of interest, will be ready and commissioned within 23 months. There are concerns of whether this is too optimistic, with 36 months being mooted as a more realistic period.

Gas tank location: An artist’s impression supplied by the Labour Party placed two huge gas storage tanks on the Delimara foreshore, which is currently occupied by a mound of rubble. Questions have been raised as to the capital expenditure involved to put the tanks there since infrastructural works may be required to stabilise the area, which is built on reclaimed land.

What’s the difference?

Household vs power station gas

A gas-fired power station will not run on the type of gas used every day by families to cook and heat their homes.

The bottled gas used by households is liquefied petroleum gas (LPG) and is a product derived from oil. It can be stored under low pressure and this is why it is available in relatively light, metal cylinders.

The gas used by the power station is liquefied natural gas (LNG), which is extracted directly from the ground. It has to be stored at high pressure and so cannot be supplied in bottled form to households.

However, it can be supplied for domestic use through a pipeline system as is done in the rest of Europe. LNG, which is a very clean alternative to oil, is cheaper than LPG.

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Tony Borg Borg

Jan 10th, 16:57

C.Borg Fejn qeghdin nafu ma Muscat ma nafux.

Francis Saliba M.D.

Jan 10th, 16:13

Gas-powered electricity generation was not feasible before piped gas became a possibility in Malta with the EU help for the acquisition of an interconnector joining us to the Europe network.

Francis Saliba M.D.

Jan 10th, 16:17

@j brincat

Tonio Fenech looked anything but stunned on TV this afternoon as he tore to shreds the LP dream of more efficient and cheaper production of electricity based on impracticalities.

Francis Saliba M.D.

Jan 10th, 16:22

The only "consistency" shown by the LP is in the promotion of harebrained pre-election unworkable promises. Remember the removal of VAT? Let us pray that the Maltese will not receive a similar hard lesson soon!

Mr Andrew Camilleri

Jan 10th, 15:48

Martinelli, your penultimate line is pure invention - except for the MEPA part. But just like the Piano mega-project was approved in a three hour sitting, the same can be done for this wonderful project as most of the ground work (studies and reports required) have already been carried out. Tender may already be ready and can be issued within a few months.

Mr Andrew Camilleri

Jan 10th, 15:50

No u-turns are being implied - but that Gonzi is making statements in a total panic is the honest truth.

Paul Micallef

Jan 10th, 13:13

@Camilieri

You seem to know what you are on about, please explain how come GONZI will reduce tariffs now, and is it a good idea that we have a THIRD WORLD POWER STATION THAT USES CRUDE OIL????

M Borg

Jan 10th, 13:20

@ P Micallef

We all knew that the tariffs were to go down because of the gas link up.

Alex Ellul

Jan 10th, 13:36

Tarrifs can be reduced NOW because power genration from the inefficient Marsa power plant has been reduced further, thus making savings of millions of euros a month. When the interconnector comes into stream, power purchase would be easier, choosing the best offers from mainland producers.
Can you please explain how the Delimara power plant as third world?or did you mean Mintoff's Marsa one?

Joseph Micallef

Jan 10th, 13:40

Mr Paul Micallef - through the use of the pipeline my friend!

D Coll

Jan 10th, 14:02

@ Paul Micallef. Just because (and you are right) LG still didn't do any concrete plans yet doesn't mean that whatever Joseph says is going to work. We must not see political parties and colors. I mean after all by EU law the tender has to take 18months.. how can tarriffs go down by March 13? Let's think with our brains not agree with everything our political party says. JM might be right though

Kevin Wain

Jan 10th, 14:09

@ Paul Micallef. The idea of the present government is to lower the prices when the inter-connector starts working. As far as Prof. Ghirlando's point is concerned, I think that PL still have to explain themselves on how to reach their time frames and, other issues. I'll not discard PL's plan as a gimmick, there are some relevant points in it. The point is that more information is needed.

Joe Vella

Jan 10th, 15:57

Paul Micallef, Gonzi or any future Prime Minister can only reduce tariffs when the inter-connector, a permanent gas link ti Europe are in place, and as long as, the price of Gas doesn't go through the roof. With a permanent gas link there is the possibility that is the future Gas can be delivered to homes direct. As the article indicate LNG is cheaper then LPG which the PL opted for.

Mehdi Klein

Jan 10th, 13:43

well unfortunately i am not satisfied with the performance of PN in the last tenure. even someone like me would grade performance as 2 out of 5 stars. i think PLs calculation are executable.

B. Cassar

Jan 10th, 15:11

they also invest heavily in the heavy fuel oil with regards to the BWSC (which although they invest heavily it is still encountering endless problems), they invested in their pockets also by adding 500 euro to their income, they invested also in mater dei but then forgot to invest in enough beds (although I think they had invested in enough strechers instead), come one who stole your money then?

carmel vella

Jan 10th, 14:09

Diga dhalna gol-hajt habib, imma int tant int stordut bid-daqqa li sfortunatament ghadek ma ndunajtx!

johann spiteri

Jan 13th, 12:13

Read carefully, 10 year gas agreement

G Caruana

Jan 10th, 14:47

Ghalekk gimmick , ghax il pl hoholmu biss jafu

John Bonello

Jan 10th, 14:47

Tal- PN ma ghandomx ghall fejn joholmu fuq dan il tip ta project meta dwn tega bnew zewg power stations u interconnector u kienu huma min ta l ewwel li introcidow l iskemi ta susidju fuq is solar u il PV panels . ghalek qeddien jajdulhom lill tal PL li ghall darb ohra rega ghandom zball ghax tal PN ghandom esperjenza vasta fuq dan l-issue, fhimt issa Ramon

adrian dimech

Jan 10th, 12:35

nahseb li ma tifhimx li tibdni fuq terrapani ma hux l-istess bhal li kieku tibni fuq il-konkos hija turija ta bluha

Franco Attard Trevisan

Jan 10th, 13:11

I agree with your second paragraph... however regarding the PL, there is major difference between doing homework and doing your homework CORRECTLY

George Cassar

Jan 10th, 12:43

I think PL does have a plan and it shows in their consistency.

On the other hand, it is the PN who do not have anything. If you look at the facts: GonziPN voting to increase the tariffs, GonziPN saying "it absolutely cannot be done", GonziPN saying it is a gimmick, GonziPN saying he will reduce the tariffs. Who is believable?

Thomas Pullicino

Jan 10th, 12:33



" sold our GROWN JEWELS to the private sector " .. hahaha.. this must be one of the funniest typos I have ever read.. it's sexual implication is just fantastic, albeit the lack of intent.... sorry.. I have to repeat it ....
" GROWN JEWLES.. to the private sector "

Paul Micallef

Jan 10th, 13:03

IL-GID TAL PAJJIS, DAWK IL-KUMPANNIJI LI KIENU IRRENDU IL-MILJUNU ghal kaxxa ta MALTA.
I hope that i have ticckled your fancy, but SEXUAL IMPLICATION???? Where did that come out from??? You must be living in the in dinial, well, to belive the PROMISES AND LIES THAT your party SPOON FEDS you, you must be out of touch, Good luc,k by the way, people like you will need it after 9th March.

Thomas Pullicino

Jan 10th, 14:45



no comment..
http://books.google.de/books/about/The_New_First_Aid_in_English.html?id=cbXdHAAACAAJ&redir_esc=y

p.s. my comment has absolutely NOTHING to do with politics.. to be honest, I couldn'd give a t*ss.

carmel vella

Jan 10th, 14:04

Past, Past, Past!!

p galea

Jan 10th, 12:14

AGREED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Paul Micallef

Jan 10th, 12:00

@Mangion

Fenech cannot guarantee nothing, just GIMMICKS as usual, Constant energy bills should not be used to pump money in the goverment COFFERS so the can make stubid bridges that lead to nowhere or 80 million for PIGGIEON homes, Gonzi went to Germany and said that he has planes to cut the water and electricity bills, MELA MA KELLUX CHANCE, insomma PN appologists you have nothing to say.

Eddy Privitera

Jan 10th, 11:54

John Xuereb: Il-power station gdida tkun mibnija MILL-PRIVAT mhux mil-gvern .

John Xuereb

Jan 10th, 12:01

Eddy Privitera: xorta wahda zejda, m'hemmx bzonn 200MW ohra

John Bonello

Jan 10th, 12:06

@Eddy Privitera

Since when your in favour for privitising the power stations, it just shows your true colour EDDIE, anything JM say you bow in front of him. thats why PN voters must be caustion and vote in the coming election ..DO NOT LET PEOPLE LIKE EDDIE to choose your future. they only have one thing in common GIMMICKS to win the next general election

HENRY FENECH AZZOPARDI

Jan 10th, 12:11

@ Eddy Privitera
Mela ara fhimtekx sewwa il privat sejjer jinvesti u jibni l power station u L enemalta tixtri l energija minghand il privat Sewwa? Fin sena 2013 kulhadd jehles mill middle man biex irrahas il prodott u IL PL jdallal middleman biex l Enemalta trohhos id dawl u l ilma, meta din minghajr il middleman ma tistax trahhas.

C. Bartoli

Jan 10th, 12:15

@Eddy imma il-privat irid ikollu garanzija li ha jghamel i-profit qabel ma jinvesti u meta tokonsidra li il-prezz tal-gas dejjem qed jghola ma nistax nifhem li ha jkun hemm min jiriskja li jghati prezz ghal 10 snin. Mhux int stess tghid li fl-ahhar hames snin cilindru tal-gas ghola €15? €15 ghal 20 ltrs mela ghal dawk il-litri kollha kemm se jghola?

John Lusignan

Jan 10th, 12:15

this is a good one Eddy! Yes you are correct in saying that it will be built by the private sector. Now answer a simple question Eddy :- who is going to pay for the service provided by the private company? (keep in mind that the company will sell electricity to the buyer at a PROFIT that will include all costs to build, operate and purchase gas on a 10 year hedge? ......Answer : THE GOVERNMENT

Carmel Zammit

Jan 10th, 12:39

@ John Lusignan

Looks like you picked or understodd only part of what Konrad Mizzi said about the plan. Mr. Mizzi's plan and costings include the so called return on capital employed (ROCE). I hope you find this useful.

Carmel Zammit

Jan 10th, 12:42

@ Henry Fenech Azzopardi

No middlemen involved. I do not know where you got this from. Probably heard at tal-Pieta!!!!!

Anthony Galea

Jan 10th, 14:00

Ma hi zejda xejn ghax li bnenjna mhix tajba u kienet sparpaljar tal-flus. Lanqas kienet ghada telestiet li PN ma qalx li ser johrog tender biex tinbidel f'wahda li tahdem bil gas.

HENRY FENECH AZZOPARDI

Jan 10th, 15:28

@ CARMEL ZAMMIT

At prensent Enemalta generates its own energy. Now it has to buy from this new private company so this private investor has to make a profit, correct? THIS IS THE MIDDLEMAN THAT HAS TO MAKE A PROFIT.
This middleman is to supply 800 when Malta requires 400 and pays for 800. VERY GOOD CALCULATIONS.

V. DeBono

Jan 10th, 11:43

int bis-serjeta...Fenech who ????? issa sar jifhem...after he did nothing for years. hallina

D Axisa

Jan 10th, 12:04

From where do you have the information that the PL has pre-agreements. Substantiate you comments!!!!

Paul Zammit

Jan 10th, 12:23

@D Axisa

what I am saying is that they should publish them IF they have them. there is nothing to substantiate. Read again more carefully please. danke.

D Axisa

Jan 10th, 12:03

Didn't you hear that the phase 1 power plant is to be decommissioned by 2020. That year is when according to the PN, the gas line from europe will be ready. So, do we have to wait till 2020 to get lower prices.

M Grima

Jan 10th, 12:52

Ha, ha, ha, stone foundations for a power station. I hope you are not an architect because you would have failed miserably. Heavy stuff is laid on a concrete reinforced steel platform and not on limestone. Il-Babaw kien joghrog bil-lejn biex jaqla il-gebel tal-power station. You're funny you know!!!!

Peter Montebello

Jan 10th, 12:10

1. That's a very big IF.
2. Now it is "halvened" rates in 3 years time. Remember Muscat said 25% as of March 2014 on electricity, and 5% on Water.
3. Free and new appliances paid out by PL. You can see that up till today PL does not exist any longer. Conveniently it changed the name to Movement; and neither are we seeing the torch and the red colour.
cont/

Peter Montebello

Jan 10th, 12:12

4. Where is the money coming from to pay for the appliances? simple from the taxes of the people. So it is you and me who will pay for these appliances.
5. And then, after every family has the appliances, these shops can close down with loss of jobs.

moira sciberras

Jan 10th, 12:20

Mhux hekk issa jixtri l appliances il PL.qalu tant Li mhux veru l ewropa taghtina l flus lil maltin alla jbierek issa anki biex nixtru l appliances ha taghtina .dahkux wake up people its all bullshit ahjar jitghallem jisthi Joseph mhux il bierah semma l Madonna Li dehret lil tonio Fenech !!

M Grima

Jan 10th, 12:59

@Moira Sciberras

Sewwa din.

Zguzi mhux il-ministru kien qal li dehritlu il-Madonna. Forsi rega kelmitu. Tkunux ipokriti ghax qed taqghu ghaz-zufjett.

Jisthi minn seraq lill-poplu Malti mill €600 li ha fil gimgha filwaqt li jien u int hadna €1.16 fiol gimgha.

Joseph Aquilina

Jan 10th, 11:52

At present the EU only acknowledged that Malta & Cyprus being small island nations can apply for funds to built gas piplines.Minister Pullicino said that this progect can't happen in the next 5 years and it will be funded partly by the EU and the Private sector. SO The PN's proposal will still involve the private sector.

Marco Galea

Jan 10th, 11:39

what are you saying? Tonio Fenech is not questioning the fluctuation in prices, but questioning which private company will sign a contract for 10 years to fix the price of gas. No company will do that without requesting a signiture on the contract which guarantees that no losses are made or a sum of money as token for that risk

John L Galea

Jan 10th, 11:29

@FAT: They are not building another power station but modifying it. The BWSC was selected by GOnziPN and his clique against all odds. The mixture between gas pipe and ships to avoid any problems if there are problems by the suppliers like happened 2 years ago with Russia. The best energy plan is that of the PL. The PL based it's plan on a mixture of technologies with emergency supplies in place.

John L Galea

Jan 10th, 11:31

@FAT (part 2): The Real energy plan is that of the PL. It is very ambitious but doable and JM put himself accountable to it. The 200MW plan first as a long term plan as in the future the energy needs will be definitely much higher. Also, we can start selling the extra power. Furthermore, the PL is open to explore new technologies of renewable energies apart from sun and wind.

John Lusignan

Jan 10th, 11:58

@JohnLGalea - you evidently havent looked at PL's student quality presentation. Yes PL is proposing a new power plant. As for the future - energy needs will come down not go up as the EU is mandating higher efficiency in all appliances. If you believe PL can commission REAL studies, an EIA and issuue a tender, get a permit and build a new pwerstation in 12 months then Im PETER PAN!

Franco Attard Trevisan

Jan 10th, 12:13

@ J L Galea

As far as i know they said they're gonna convert the BWSC to gas plus built another one instead of the Delimara phase 1
If the PL's plan is 'the' best as you state I wonder why they don't want to publish the full details
I feel we were taken for a ride by the PN and we'll be taken for another ride by the PL as things stand... hope I'm wrong . Also JM's 'word' is far from a guarantee!!

Carmel Zammit

Jan 10th, 11:41

Are you serious? in his frenzy to shoot down the project he lost his logic. His argumetns were not followed up by logic.

Eddy Privitera

Jan 10th, 11:44

Daniel. You should have seen Tonio Fenech yesterday on REALTA. He seemed shell-shocked by the much more prepared Konrad Mizzi. After all Konrad Mizzi has been involved in this project from Day 1. While Tonio Fenech had no idea about this project until 2 days ago. And so has been trying to shoot it down AS EXPECTED on the eve of the election !

John Lusignan

Jan 10th, 12:00

Eddy he seemed shell shocked at how daft and unrealistic LP's student quality proposal is. Each part of the non detailed idea is 100% flawed.

C. Bartoli

Jan 10th, 12:16

@Eddy imma il-privat irid ikollu garanzija li ha jghamel i-profit qabel ma jinvesti u meta tokonsidra li il-prezz tal-gas dejjem qed jghola ma nistax nifhem li ha jkun hemm min jiriskja li jghati prezz ghal 10 snin. Mhux int stess tghid li fl-ahhar hames snin cilindru tal-gas ghola €15? €15 ghal 20 ltrs mela ghal dawk il-litri kollha kemm se jghola?

John Bonello

Jan 10th, 15:16

@ Eddie

you sure you was watching the same program ?? I think it was the other way round....and whose running away from the journalists now to save his face....why not publish their studies and have an independable consultant firm scrunitizing this project where is the transperancy now JM shouted all about during the last 5 years, were is the political accountability ????

Eddy Privitera

Jan 10th, 11:47

John Bonello: You are comparing an administration which took 17 years to build Mater Dei with a new administration which would be led by a dynamic team to get things done in the shortes time possibe. another PL government, under Dr. A. Sant had finished the whole Qawra/Bugibba project in 3 to 4 months time ! It would have taken GonziPN 2 years at least !

Peter Montebello

Jan 10th, 12:16

Eddy, so the MLP of the years of Alfred Sant, was not dynamic enough to finish Mater Dei during the 22 months that they were in power. Or you want to forget that?

C. Bartoli

Jan 10th, 12:18

and Alfred Sant was forced to introduce 33 new taxes and a sales tax of 29% to cover up for the big gimmick of VAT removal.

John Bonello

Jan 10th, 12:34

Yes EDDIE a dynamic team...2/3 of the MLP candidates are old enough to be JM grandads, some of them served under Mintof, KMB and AS administration. what happened to the living wage, increase in minimum wage,the Cyprus model, the Swiss these too were dynamic in there time but turned down in the last minute by the same dynamic & charismatic JM

Carmel Zammit

Jan 10th, 11:39

May be for people like you but whoever is interested in lowering the electricity bill it is not.

Eddy Privitera

Jan 10th, 11:49

John Lusihgnan: Is that what you think ? Have you watched REALTA yesterday ? Tonio Fenech looked like a fish out of water when confronted by Konrad Mizzi !

John Lusignan

Jan 10th, 11:31

by doing what has already been stated and planned for. If you knew the facts and listened to the debated you know that the interconnector will bring the cost of generation down to11 cents and that an eventual pipeline funded by EU will bring it down to 8 cents - lower than the 9 cents projected by labour on ficticous and unrealistic asssumptions and an investment of over 300 million. 100% gimmick

Marco Galea

Jan 10th, 11:42

how PN will lower the prices? Using the same method that PL will reduce tariffs in 2014, a year before the power station is built i.e. using the interconnector the PN invested in!

Eddy Privitera

Jan 10th, 11:52

John Lusignan: Have you forgotten that Dr. Gonzi had said that reducing the present W&E tariffs WOULD ENCOURAGE WASTE ??? Why then has GonziPN assured the EU that if re-elected W&E tariffs WOULD BE RAISED ???? Dr. Gonzi has NEVER DENIED this when repeatedly challenged by Dr. Muscat !

Thomas Anderson

Jan 10th, 12:05

@ Lusignan & Zammit. So now that everyone agrees that the lowering of Energy charges is possible, why has GonziPN for the last year denied that the lowering of tariffs was not possible? And why did the same Gonzi vote wholeheartedly against the lowering of the tariffs? Have we been cheated for the last 5 years in paying more than we should have been paying?

John Lusignan

Jan 10th, 12:05

and he is right............reducing prices encourages waste. 100% agree with him - and you do too but you would never admit it. PN will give the best price of energy with the best plans. Real plans not half baked imaginations based on fiction and unrealistic ideas. PN always took the right direction for the country and labour always took the wrong ones. Labour doesnt work FULL STOP.

Thomas Anderson

Jan 10th, 13:38

@Lusignan Just ask any pensioner who has 600E a month if he is going to waste electricity just because bills become cheaper. Maybe you should get off your high horse and start living in the real world. Regarding best plans by GonziPN re power supply does that include a heavy oil prototype powerstation that doesnt work?We will never forget who voted wholeheartedly against the people.

C Falzon

Jan 10th, 12:00

E mela hsibtu GonziPN tela bl ghajta tat tnaqqis fl income tax umbad bqajna b xiber imnieher!!!

John Lusignan

Jan 10th, 12:08

FYI - fracking (and shale) is the equivilant of eating dolphins. its a disaster for the environment. God forbid prices come down to the detriment of the environment.

Carmel Zammit

Jan 10th, 11:37

The article is about the retail price of gas in the USA. No realtion whatsoever mate.

John Bonello

Jan 10th, 12:40

@C Zammit,

correct and its the US which determine the prices of fuel around the world. I've been in this busniess far too long, i think I think I know a lit bit more than you on this subject alone. 20 years working as en electrical engineer in oil and gas plants is far enough for me not to swallow these gimmicks

M. Spiteri

Jan 10th, 17:03

this is in the short term. googling something you don't know about doesn't' make you an expert.

Read about fracking and Shale Gas as well. maybe that helps you

Michael Sciortino

Jan 10th, 11:19

Mela l-interconnector mhux servizz f'idejn il-barrani? Iz-zejt biex jithaddem il-power station mhux barrani?

Il-PN biegh il-port, l-ajruport, bank u t-telekommunikazzjoni lill-barrani. Biex qed titkaza?

Carmel Zammit

Jan 10th, 11:27

Gonzipn gave our telecommunications,transport and our banks to foreigners -where were you then? Additionally what would the situation be like with the inter-connector cable? Would the energy be sourced locally??

John Xuereb

Jan 10th, 11:23

world reknown consultants ghaliex hemm kumpanija u ghadiet erba figuri lil PL u dan minghalih sab is-soluzzjoni ta kollox?

Tony Borg

Jan 10th, 11:31

@ John Xuereb

Let me remind you that these consultants are the same consultants that were brought in by Gonzipn to fix the mess that the new bwsc plant was in.

So in your opinion these consultants are good when they are given a job by Gonzipn and rubbish when they are employed by the PL.

Carmel Zammit

Jan 10th, 11:32

@ John Xuereb

Need you be reminded that the consultancy firm commissioned to do the job by PL is the same one used by Gonzipn and Enemalta?

Marco Galea

Jan 10th, 11:44

Yes Tony Borg and Carmel Zammit, and the same consultants the PL criticised for using!

Tony Borg

Jan 10th, 11:49

@ Marco Galea

Can you please illuminate us as to when and where the PL critisized the govt for using these consultants?

A link will be very helpful

John Bonello

Jan 10th, 12:47

the wikipedia article is 7 years old and the other link the contract show is dated in 1995..were oil price was $12, a year later the MLP then led by AS and JM as a journalist the E&W prices exploded in fact it was more expensive then then it is now.

but for you to know since the spikes in fuel prices this type of contracts are no longer DOABLE

Daniel Galea

Jan 10th, 11:13

This is the proof that the reduced price of electricity Muscat is proposing will be valid for one year.

So far Muscat has not guaranteed for how many years this 9c6 per unit will be valid. Can somebody from PL illuminate us on this?

Michael Sciortino

Jan 10th, 11:16

'Rise in gas prices'. How can you be so sure? Read this article in the Guardian. There is every chance that the price of gas will fall. The supply of gas is expanding rapidly with shale gas and fracking.

http://www.guardian.co.uk/commentisfree/2013/jan/09/us-energy-state-of-independence

Mr ALBERT LEONE GANADO

Jan 10th, 11:41

Price adjustment clauses work both ways. Escalate or reduce as price moves. This is economics unless you pay price of hedging. It is a fact that because of fracking technology the world gas reserves has gone up tenfold. But gas prices l ultimately depend on political decisions of Russia and the US the world's largest producers unless we find our own gas utilizing this new fracking technique.

A Vella

Jan 10th, 11:11

I agree with you Felix, but you need to see what was put in and was left out from the consultants recommendations .If LP is really transparent they would have no problem issuing all the details, there is no sensitive info because up to now no agreements have been made. This article is starting to show the beef, the Issues of concern need to be answered otherwise it is just pie in the sky.

Joseph Borg

Jan 10th, 11:45

when is the BWSC report commissioned by Tonio Fenech going to be published?

is there any chance that if the PL report is published you will agree with it?
or is it 100% certain that you will not like it,,,,,, just because the PN will say so.

ejja nikbru ftit please u nirragunaw qabel nitkelmu

John Borg

Jan 10th, 11:09

Becuase oil exploration is not only very costly, but it is also a gamble. Many costly holes are drilled prior to finding a well and even then, you are not sure how many barrels of oil are present or even how many can be extracted.

Franco Attard Trevisan

Jan 10th, 11:10

even if we do (some day maybe) strike oil, we should still switch to a cleaner fuel... We would then sell the oil and keep malta clean at the same time :)

Giovann Attard

Jan 10th, 10:53

Daqs kemm ghamel gaffs Gonzi PN tant li rnexxielu jdejjen pajjiz bl-oghla dejn fl-istorja ta' Malta, haga kbira ghax ninvestu ftit flus mhux hazin fi pjan ta' energija li jiswa mitqlu deheb ghal pajjizna?! Ahjar milli l-PM jiehu 500 Ewro zieda fil-gimgha talli qaghad isiefer 'l hawn u 'l hemm icekcek it-tazzi mal-barranin. Ghadu ma jafx li pajjiza sar it-teatrin tal-Ewropa!!

John Borg

Jan 10th, 11:11

@Giovann Attard

Giovann, if you look at Europe and surrounding countries, it is impossible not to increase debt in times of world crises. The important thing is that it is under control and that the money is spent in capital expenditure projects (i.e. assets).

Malta is not in Austerity measures likes rest of Europe. YET, until Joseph is in Power.

John L Galea

Jan 10th, 11:26

@A. Bonello: What cracks? These are doubts cast by a person who was also factor of Enemalta's downfall. Furthermore, the only doubt cast was of the timeframe. Otherwise, the PL's plan is not a gimmick or fairytale at all. GOnzi yesterday made a clamorous u-turn and belied his clique and now he is saying that it is possible.

Joseph Borg

Jan 10th, 11:43

@ John Borg

Id dejn tal pajjiz ma ilux jezisti mil krizi internazjonali lil hawn.
ilu gej min gvernijiet nazzjonalisti tal passat. allura toqodx twahhal fil krizi

l assets li qed issemmi inti kollha mibjunin lil barrani
l asset li se jkollu l pajjiz wara din l legizlatura huwa teatru bla saqaf

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