PN reacts angrily as the EU approves government plans to pay Electrogas
Commission says the rate of return for Electrogas Malta is in line with that of similar projects
The Nationalist Party reacted angrily this afternoon after the European Commission approved Maltese government plans to pay Electrogas Malta for providing energy to Enemalta. The measure compensates Electrogas for the additional cost of fulfilling public service obligations, the commission said in a statement in terms of state aid rules.
It said that last June Malta notified it of plans to support the Delimara Gas and Power Energy Project for assessment under EU state aid rules.
Electrogas Malta, which has built the new gas power station, has a public service obligation to make available electricity and gas to Enemalta, and supply electrical energy and gas when dispatched by Enemalta. This contract will last for 18 years.
"The rate of return for Electrogas Malta is in line with that of similar projects. On this basis, the Commission concluded that the company will not be overcompensated for the services it will provide," the commission said.
PN: THIS IS A BLOW TO PUBLIC CONFIDENCE IN THE EU
The Nationalist Party said it was disappointed by the EU’s decision.
“Despite the clear facts before it, the Commission opted to approve Joseph Muscat’s and Konrad Mizzi’s corrupt power station,” it said.
“Such decisions are a blow to public confidence in the European institutions as they fly in the face of what the people expect from the EU.”
The PN said the facts were clear and undisputed:
Malta did not need a new power station because it had enough generating capacity;
Malta would have cleaner air if it bought electricity from the interconnector.
The unit cost of electricity from the new power station for 18 years would be twice that of the interconnector;
The people who handled the power station negotiations – Konrad Mizzi and Keith Schembri – had set up secret companies in Panama and admitted that they would receive commissions of up to €1m a year.
It was for these reasons, the PN said, that the Maltese people had expected the European Commission not to approve a project which may end up fattening the pockets of some people with commissions for 18 whole years.
In order to win back public confidence, the European Union first needed to understand what the people were feeling. In this case, instead of understanding the people, the commission decided in favour of those who have a secret company in Panama, the PN said.