Energy Minister Konrad Mizzi is insisting that utility rate cuts for consumers and businesses will not be financed through taxes or higher fuel prices, rebutting claims by the Nationalist Party.

He said Electrogas will be paying €30 million over a 12-month period that will go to finance the lower tariffs for consumers that came into force this year.

Under the Labour Party’s original plan, the winning consortium had to make an upfront payment on signing the agreement which would be used to lower consumer tariffs. However, Dr Mizzi said Enemalta’s cash flow position would improve as a result of the investment by Shanghai Electric.

He insisted Enemalta drew up a seven-year business plan that factored in the tariff reductions as promised.

Asked how Enemalta would finance next year’s €50 million cut for businesses - this would have been possible as a result of the power station starting operations by March under the original plan - Dr Mizzi said this was also factored in the business plan.

During a press conference at Castille, he was reluctant to give a new deadline for the completion of the gas power station repeatedly telling journalists to wait until the end of November.

“I am reluctant to give a deadline now but we will have a new timeline when the talks between Shanghai, Enemalta and Electrogas are concluded by the back-end of November.”

Photo: Matthew Mirabelli

Earlier Opposition leader Simon Busuttil said the Nationalist Party would continue to insist that the government deliver on its promises.

He reiterated that the Prime Minister was not to be believed since he failed to resign as promised after admitting the power station will miss the deadline next March.

Dr Busuttil said that what families were saving on their electricity bills, they were paying for in higher prices for petrol and diesel.

Dr Busuttil called on the government to immediately lower petrol and diesel prices as the cost of oil had gone down

He asked where the money to finance the tariff cuts was coming from, saying that cost savings to the tune of €187 million had been promised as a result of the March completion date.

Dr Busuttil said that the Opposition was calling on the Prime Minister to keep his word because he had assumed personal responsibility for the project.

Asked whether he expected government MP Marlene Farrugia’s vote to reflect her criticism, Dr Busuttil said how she voted was her own business, however, he admired her courage to put the same questions raised by the Opposition.

If anything, she showed how valid the Opposition’s questions were, he said.