(Adds Opposition statement)

Just over 62,000 people living in 34,195 households will be receiving a one-time energy benefit to cushion the impact of the increase in the price of fuel.

The head of the household will receive €70 while each dependent person will receive €35.

Finance Minister Tonio Fenech said that most of these families already received other social assistance and were among the most vulnerable. They included single mothers, the unemployed, pensioners on a minimum pension and those falling under an annual income threshold of €8,158.

The cut-off date for this exercise was June 30.

The minister said that 17,500 families qualified automatically, a further 13,124 qualified through means testing, another 2,866 families who did not qualify for the energy benefit already being given will be given this benefit.

This was because the exercise showed that they still fell beneath the €8,158 threshold once the benefits they received were not considered.

The benefit, discussed and agreed upon within the Malta Council for Economic and Social Development, will be paid in the third week of September. The figure was not discussed.

Mr Fenech said that although the original budget was of €2 to €3 million, it has now gone up to €4 million since more people have been included.

A union wanted the increase to be given to everyone but the government did not agree because this would not have been sustainable.

Mr Fenech said that rather than increasing wages half way through the year, the government opted for this temporary solution before establishing the COLA.

This benefit is over and above the energy benefit already being given to around 30,000 families.

The government's decision has been welcomed by the Malta Employers Association, the Confederation of Malta Trade Unions and the Union Haddiema Maghqudin.

Mr Fenech said that discussion on changes to the Cola mechanism were ongoing and Enemalta was studying the market on hedging agreements for the purchase of oil for 2012.

Currently, the cost of oil is $117 per barrel and the oil hedged by Enemalta for this year was hedged at €80 per barrel, he said.

Asked about the Marsa power station, which has exceeded the 20,000 operational hours they were allowed under a derogation Malta obtained when it joined the European Union, Mr Fenech said that Enemalta had taken a number of measures to reduce emissions, even though some were still above the allowed limits.

Although the derogation cannot be extended, Enemalta is in discussions with the Commission since the corporation has taken measures aimed at reducing emissions.

He pointed out that because of the complaints that had been raised about the Delimara extension, this was behind schedule and the government was now planning to shut down half the Marsa power station by mid-next year, the rest in 2013 when the interconnector project is completed.

Beneficiaries to get less than €1 a week - Opposition

Opposition spokesman Karmenu Vella said that while the government had last year forked out €14 million to assist 142,000 families, this aid was now reduced to €4 million and only 34,000 families would be benefitting.

Moreover, beneficiaries would be getting less than €1 a week. This was while the Prime Minsiter and his ministers gave themselves a €500 weekly raise.