Labour’s electoral pledge to lower electricity rates will go ahead as planned, with bills decreasing in March by an average of 25 per cent. Water rates will also drop by five per cent.
Throughout the Budget Speech, Finance Minister Edward Scicluna took pot shots at the Opposition, which had dubbed the electoral promise as Alice in Wonderland during the electoral campaign earlier this year.
“Alice in Wonderland will leave €25 million in people’s pockets,” he said in his speech.
Prof. Scicluna said this measure would also have a positive impact on the country’s economy without affecting public finances.
He added that, as the Government’s energy plan continued to take shape, the second part of the electoral pledge – to reduce utility rates for businesses – would come into effect in 2015.
He said the Government’s energy plan was “on track”, following the interest expressed by large, international consortiums.
“Had it been for others, consumers would have continued to pay high utility rates. This Government is the guarantee for cheaper utility bills,” he said.
On top of the energy project, he said, the Government planned to carry out a study to determine the feasibility of a gas pipeline connecting Malta to the European Gas Network through Sicily. Funds have been allocated for this proposed EU co-financed project.
He also spoke of the direct investment being negotiated with the China Power Investments and Shanghai Electric, which is set to purchase a minority shareholding in the State energy corporation with an injection of some €200 million.
Prof. Scicluna said this injection would “rescue Enemalta from the disastrous situation it was facing”, and would guarantee the jobs of its workers and open new market avenues.
The level of service of ARMS, the utility revenue collector, also needed to improve, he said.
He also announced the setting up of the Malta Oil and Gas Corporation, a Government company which will be responsible for the logistics related to oil and gas exploration within Maltese territory.
The corporation would also provide an infrastructural framework for the development of an oil and gas industrial services industry in Malta.