Lower domestic electricity prices that will stay the same until 2020 were unveiled by the Government yesterday.

Energy Minister Konrad Mizzi said the new prices were precisely those that had been published by the Labour Party before the election.

The significantly lower tariffs will mean consumption of up to 2,000 units a year is charged at up to 35 per cent less than the current rates, while consumers using up to 6,000 units a year should see their prices drop by some 25 per cent.

Those consuming more than 10,000 units, which according to Dr Mizzi were “those who may have an indoor swimming pool”, will see their tariffs fall by just five per cent.

Speaking at a press conference, Dr Mizzi said although these prices still had to be approved by the Malta Resources Authority, the Government planned to lock them at that level until 2020.

Asked whether the prices had already been negotiated with Electrogas – the preferred bidder for the gas-fired power station announced recently – Dr Mizzi confirmed these prices had been set with the private contractors.

He also said that since the new power plant would not be ready before spring 2015, the consortium – which includes the Tumas and Gasan groups – will be passing €30 million on to the Government next year to make good for the year’s reductions.

The minister said the gas power plant project was already on track and an environmental impact assessment will be passed on to Mepa for the permit process to start. He said another 20 studies had also been conducted.

Times of Malta last month asked for a copy of the studies.

When reminded yesterday, Dr Mizzi said they would be made public shortly.

On the price of fuel, Dr Mizzi said the Government’s intention was to provide stability in this area, although he admitted the current prices of petrol and diesel were only guaranteed until March.

In the Budget speech, the Government announced an increase in excise tax of 2c per litre of fuel from 2014. However, Dr Mizzi said until March this was not going to be reflected in the price paid by consumers.

Consumption of up to 2,000 units a year will be charged up to 35 per cent less

Asked what would happen after March, the minister said the Government would keep trying to hedge prices but there was no guarantee they would remain the same after the first quarter of 2014.

He added that the Government was also working on a number of other plans in the energy sector and indicated a change in the renewable energy policy to be “shifted towards solar energy”.

Currently, the plans envisage building three wind farms, two onshore and one offshore, although the Government is considering dropping this option.

Malta is bound by EU rules to start producing 10 per cent of its energy consumption from renewable sources.

On water, Dr Mizzi said the Government would be improving the use of second-class water and a new reverse osmosis plant would be built to clean this. No details were given on where this will be built.

Domestic electricity tariffs