The Government’s “unsustainable” energy policies would lead to further electricity price hikes after the election, according to the Labour Party.

However, Labour has ruled out having to raise electricity prices itself, saying that its policy change to switch to gas would also enable the country to see a turnaround at Enemalta.

“Consumers are already facing exorbitant electricity bills and increases in tariffs are not an option. Enemalta’s financial situation will be addressed by reducing the generation cost of electricity. The PL has the plan and the commitment to address this issue. This will result in lower tariffs and a sustainable Enemalta.” Labour was replying to a series of questions by The Times regarding a leaked KPMG report commissioned in 2011 for Enemalta which warned about the corporation’s “under-recovery” and suggested further price hikes.

The document, which was reported in The Sunday Times, raised further questions about the sustainability of the current electricity prices. Asked whether Labour would have to raise the prices in its first year of Government due to the corporation’s financial situation, Labour said that its energy plan would help “turnaround” Enemalta.

“Labour’s plan will deliver an annual cost saving of €187 million. Of these, €77 million will be channelled to the consumer through a 25 per cent tariff reduction. A substantial proportion of the remaining savings will be dedicated specifically for turning around Enemalta in the process,” a Labour spokesman said. Asked whether the Government was right not to raise prices in 2011 despite KPMG’s advice, Labour agreed with the Government’s position that Maltese consumers could not afford further increases. However, the Labour spokesman said “mismanagement” in the energy sector meant Enemalta’s situation was unsustainable unless swift action is taken.

“Labour’s proposals address these concerns by ensuring that Enemalta is turned around and in the process reducing tariffs. The PN’s position means no change to its energy policy, which position is unsustainable. Hence, the Gonzi Administration is simply postponing its planned increases in electricity tariffs for after the election.”

Labour said a recent European Commission report confirmed the Government would raise tariffs next year assuming no policy change.