Electrogas will pay the €30 million originally due as an upfront payment over a 12-month period starting this year, according to the Energy Minister.
Konrad Mizzi said the payment by the company that has to build a gas power station would help finance the tariff cuts for households that came into force earlier this year.
The original energy plan presented by the Labour Party made household tariff cuts in March 2014 dependent on the upfront payment.
A similar cut for businesses in March 2015 would have been possible because the power plant would be up and running.
The deadline for the project will not be met but the government has insisted it will still cut electricity costs for businesses next year.
Dr Mizzi was unfazed when asked where the money to finance the €80 million in tariff cuts was coming from, given the power station delay and non-payment of the €30 million.
I am reluctant to give a deadline now but we will have a new timeline when the talks... are concluded by the back end of November
He insisted the plan to cut utility tariffs could be implemented as promised because Enemalta and Shanghai Electric Power had drawn up a seven-year business plan that factored in the five-year fixed electricity prices agreed with Electrogas.
Dr Mizzi denied claims by the Opposition that lower electricity rates would be financed through higher fuel prices.
But speaking at Castille in the aftermath of a parliamentary debate on the government’s energy plan, Dr Mizzi 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.”
Earlier, Opposition leader Simon Busuttil said that the Nationalist Party would continue to insist that the government delivered on its promises.
He reiterated the Prime Minister could not be believed since he failed to resign as promised after admitting the power station would miss the deadline next March.
Dr Busuttil said what families were saving on their electricity bills, they were paying for in higher prices for petrol and diesel and called on the government to immediately lower fuel prices.
Asked whether he expected government backbencher Marlene Farrugia to reflect her criticism of the delay in her vote, Dr Busuttil said she was entitled to vote as she pleased.
“But I admire her courage to question the plans… if anything her criticism shows that our questions were valid.”
ksansone@timesofmalta.com