The vice-president of the European Commission, Maros Sefcovic, this afternoon described the power station project as a blueprint for other projects, blending various technologies. However he did not answer questions on billing transparency and the role of the energy regulator in Malta.
Mr Sefcovic is in Malta as part of a series of visits to EU countries to discuss the EU's plans for an Energy Union. He toured the House of Representatives and had a brief discussion with MPs.
He visited the site of the new gas-fired power station this morning and had talks with Prime Minister Joseph Muscat.
His talks in the various European capitals have included the mechanism of the energy emissions trading system, measures to encourage consumers across Europe to save energy, transparency in energy billing, switching of energy suppliers by consumers, energy storage, integration of renewable energy in the national grids and how to reform the electricity market in Europe.
He said he also intends to present a new LNG strategy.
Among the MPs who asked questions was Nationalist MP Tonio Fenech. He asked what progress has been made in EU assistance for Malta to have a gas pipeline from the European mainland and possibly a link with North Africa.
Mr Fenech observed that despite what the Energy Union plans laid down, Maltese consumers have a single energy distributor and that distributor is tied down with a power-purchase agreement for a number of years. The Maltese, he said were not being given choice and transparency in pricing. Was the Commission assessing the situation in Malta including the role of the Regulator? It appeared, he said, that the Regulator was absent in Malta as prices abroad fell by 70% compared to 25% here.
In his reply, the Commissioner said the gas project was very important for Malta, especially as it moved from the polluting heavy fuel oil to something which was more modern and would reduce emissions by a million tons per year.
The new power station could serve as a blueprint for other projects as it linked several technologies together including the conversion of the oil-based power plant to gas supplied from ships. LNG prices were dropping, he said and hence the importance of an LNG strategy for Europe. Europe needed terminals and better interconnections for the supply of gas.
It was important for security of supply to have a sub-sea pipeline so that energy could be available at the lowest possible price. EU assistance took years, he said, but he wanted the process to be speeded up. He hoped a good solution of 'blending' funding sources could be agreed.
The commissioner said the Energy Union would be judged by the people on the basis of prices, which would come about through security of supply, efficiency, decarbonisation and efficiency.
Malta, he said had significantly reduced energy prices but this was not the case across Europe as there were many variables between the wholesale price and consumer prices, such as distribution and network factors and taxes.