Finance Minister Edward Scicluna said this morning that should the new gas-fired power station not be commissioned on time, Enemalta would still be in a position to make up for the drop in projected savings through the cash injection by the corporation's Chinese partners.

Speaking during a press conference in Valletta’s Republic Street to explain the economic impact which the reduced electricity tariffs are expected to have on the Maltese economy, Prof Scicluna said that in the first year of the tariff cuts, Enemalta would be paying for the €30 million cost through a one-time arrangement it had made with the winning bidders for the new power station.

Asked whether the bidders had already passed on this money, since the contract has not yet been signed,Prof Scicluna said that he had no information on this.

On what Enemalta’s position would be next year if the power station was not yet functioning, Prof Scicluna said that the Chinese investment in Enemalta would provide the necessary back-up.

Prof Scicluna said that the government expected the tariff cuts to boost the economy by 0.5 per cent.The cuts would boost consumption by €42 million.

Prof. Scicluna explained that the economic benefit of the reduction in water and energy tariffs will mean an injection of €30 million into the Maltese economy, an injection that will originate from external sources which will mean there will not be any compensating increases in taxes, as was the norm under past administrations.