Opposition leader Simon Busuttil this afternoon lashed out at the Prime Minister saying the power station guarantee was only intended to save his skin.

Without such a guarantee, there would be no power station, he said.

Dr Busuttil said that without a power station, the Prime Minister would have to resign in line with his electoral pledge that he would build a new gas-fired plant.

"This has placed a burden of €2,500 on every Maltese family and was communicated two weeks after the agreement was sealed in an attempt to keep the issue on the back burner in the middle of summer," he said.

The PN leader was addressing a news conference at Parliament flanked by several members of the shadow cabinet.

Dr Busuttil said that this issue had flagged an unprecedented number of concerns over the transparency levels of this government, which, he accused of undermining democracy.

The PN leader noted that there was no reference to the State guarantee in the expression of interest, and so he questioned whether this contract was still legal since others who lacked financial resources might have also been interested in submitting a bid.

"Who will shoulder responsibility if the European Commission rejects the security of supply agreement", he asked in relation to the proposed deal which would enable the government to step in if Enemalta would not be in a position to buy electricity from Electrogas.

Dr Busuttil also criticised the government about the recent power cuts, saying emphasis should be on the grid rather than generation.

He added that the reduction in electricity rates was only possible due to the investment in the BWSC plant and the interconnector made by the former PN administration.

Energy Minister Konrad Mizzi said later he was “baffled” by Dr Busuttil's reaction.

After calling Labour’s electoral promise to reduce utility tariffs a "gimmick", the Opposition leader took credit for such a reduction, the minister said.

The Labour Party said in a statement that after describing the reduction in water and electricity rates as the gimmick of the millennium, Dr Busuttil was now claiming credit for the cheaper rates.

Today he said that the power station project was taking place, and he was right, it said.

Read ministers' defence of guarantee here.