The reduction in domestic utility tariffs, by an average 25 per cent, will come into force “by the end of this month”, Energy Minister Konrad Mizzi said yesterday.

Labour has repeatedly pledged to implement this measure by March 2014.

But as the month enters its first week, no official announcements have so far been made.

Asked by Times of Malta whether the new tariffs had automatically kicked in at the beginning of the month, Dr Mizzi said this was not the case.

“The new tariffs will take effect by the end of the month.”

However he declined to give further details, saying more information would be provided in the coming weeks.

Labour’s flagship pre-election proposal to reduce utility bills hinges on its ambitious project to build a gas-powered power plant next to the existing one in Delimara, which will also be converted from heavy fuel oil to this cleaner form of fossil fuel.

The government set a two-year deadline to deliver its promise.

Last October the government announced that the consortium Electrogas Malta had been chosen to build the gas-fired plant and the required infrastructure, which includes a permanent floating gas storage depot berthed at Delimara.

The deal will see the consortium dishing out €30 million to buy Enemalta’s subsidiary company Malta Power and Gas, which was set up last year to initiate the planning process.

This money will be used to cover the loss of revenue that Enemalta will incur between the introduction of the lower tariffs and the start of operations of the gas-fired plant.

In January a government spokesman had told this newspaper that the contract between Enemalta and Electrogas was due to be signed in a short while but there has been no news yet of the deal being sealed.

The spokesman said the corporation was ironing out the final logistical details with the successful bidder and that no appeals had been lodged by the losing bidders.

The government’s plan will see tariffs fall by up to 35 per cent for those consuming fewer than 2,000 units a year, by 25 per cent for consumption below 6,000 units and five per cent for heavy users whose consumption exceeds 10,000 units.

In addition, water consumption tariffs will be reduced marginally by five per cent.

In its manifesto, Labour had also pledged businesses would benefit from these tariffs by not later than March 2015.