Finance Minister Edward Scicluna in Republic Street, Valletta. Photo: Chris Sant Fournier

Enemalta will be able to sustain lower electricity tariffs next year even if the new power plant is not commissioned on time, Finance Minister Edward Scicluna said.

In the eventuality the project was delayed, Enemalta could now stand on the financial injection into the corporation from its new Chinese partners and would be able sustain any shortfall in revenue.

“Although we don’t know whether there will be a delay, or how long this will take, Enemalta will be in a much stronger position to sustain the shortfall next year,” Prof. Scicluna said.

He was addressing a press conference in Valletta’s Republic Street on the impact the power tariffs reduction is expected to have on the economy.

Enemalta, he said, would be receiving a €100 million injection in its shareholding and would be selling the Delimara BWSC plant for €220 million.

“This will surely help Enemalta to sustain a shortfall if the new power station is not completed on time,” he insisted.

This will surely help sustain a shortfall if the new power station is not completed on time

The winning bidders for the fire power plant, ElectroGas Malta Consortium, will be making a €30 million upfront payment to Enemalta to buttress the first year of the tariff reduction.

According to government plans, the new power plant must be up and running in 2015, producing electricity more cheaply.

Next year, lower utility rates will also be rolled out to industry.

Asked to state whether the upfront payment by the consortium had already been passed on to Enemalta, Minister Scicluna said he had no information on this .

Until now, no announcement has been made about the signing of the contract between Enemalta and ElectroGas to build the new plant.

However, no infrastructural work has started on the plant and its ancillary facilities in Marsaxlokk.

Prof. Scicluna said that according to calculations made by his ministry, the €30 million in lower tariffs this year should produce a 0.5 per cent increase in the island’s GDP while consumption is expected to increase by €42 million.

He said that although most of this added consumption would end up outside the country, through the purchase of imported goods, this should still have a positive impact on economic activity.