Updated - Adds PL statement below - PN deputy leader Mario de Marco said today that while the international oil price was down 73%, local power tariffs had only been reduced by 25%.

The Labour Party retorted however, that electricity prices in Malta are the third cheapest in the EU.

Speaking at a press conference, he that contrary to Labour slogans before the general election, the new power station had neither been costed, nor was it doable within the promised two years.

Neither was it true that the new power station was a private sector project since it was the people who would pay for it.

The consortium building the power station was is a situation of 'no pain, only gain' Its borrowing was guaranteed by Maltese taxpayers to the tune of €360 million and Enemalta was guaranteeing that it would buy all its output. Dr de Marco reiterated the PN's call for all relevant agreements to be published.

It was manifestly clear, he continued, that the new power station was not needed for tariffs to be reduced. Tariff cuts had been announced even before construction of the new power station started. But it was worth point out that since Joseph Muscat said he had reduced prices by 25%, the international oil price was down by 73%.

It also appeared that the power station was not needed, given the capacity of existing facilities including the BWSC plant and the interconnector.

Again contrary to what was claimed before the general election, the BWSC plan was no cancer factory. One of the present government’s first decisions was actually to extend the permit for the power station to continue to use fuel oil. The emissions were very low, and the costs of production were very advantageous.

In contrast to what was promised in the general election, privatisation of Enemalta had been introduced – a third was now owned by Chinese interest and the BWSC plant was fully owned by the Chinese.

The press conference was also addressed by Nationalist MP Censu Galea.

POWER THIRD CHEAPEST IN THE EU - PL

In a reply, the Labour Party said the people have become used to receiving lower electricity bills. It said tariffs in Malta are the third lowest in the EU. 

Were it for the opposition, it said, the reduction of power tariffs would never happened. The PN, it said, had labelled the promised cuts as a  gimmick and Alice in Wonderland.  

The PL said that between April 2013 and July 2015, oil prices had fallen by 35% not 73% as the PN had claimed. Furthermore, oil is bought in dollars and the value of the euro against the dollar had fallen. 

The PL also pointed out that under the PN, tariffs went up 70%. Tariffs went up even when oil prices went down.  In 2008 the oil price fell 51% but local prices were up 20%. 

PN STANDS BY ITS FIGURES

The PN in a quick reply said that in 2013, when Dr Muscat became prime minister,  the price of oil was some $110 per barrel. Now it is $40.

Therefore the price was down 75% and not 35%. And even if Labour was saying the truth, the reduction in local prices was not keeping up with the slide in the international price of oil. The government was making savings which were not being passed on to the people, the PN said.  

In another reply, the PL said the oil price was now €49, 25% more than claimed by the PN.