Energy Minister Konrad Mizzi told Parliament yesterday that during his first days in office he had confirmed Enemalta’s debt stood at €805 million and losses at just under €70 million.

The oil procurement scandal had cost the country untold millions and he said he had appointed a permanent observer to the oil procurement selection board.

He was speaking during the Budget debate, which began with a 12-hour stint yesterday, broken only for 20 minutes in the afternoon and ending at 9.30pm.

A total of 15 Opposition MPs spoke , including three newcomers – Claudette Buttigieg, Paula Mifsud Bonnici and Marthese Portelli.

On the Government’s side, 19 members took the floor.

Dr Mizzi said Malta had fallen back badly on sources of alternative energy with a very slow pace to reach the targets for 2020.

The interconnector project would cost €26 million more than announced and the roll-out of the smart meter system had also fallen back by two years, with a number of them not yet operational.

During, or close to, the electoral campaign the outgoing Cabinet had awarded a tax-free compensation of €5 million after a disagreement with Enemalta.

Dr Mizzi said ARMS Ltd was still giving a bad service, with infrequent or incorrect bills.

The PN Government had intended to keep the Marsa power station operational and had made a clear commitment with the EU to raise utility tariffs after the elections.

The wind farm project on which the outgoing Government had staked so much had also fallen back heavily and plans for clean energy in the next few years were unrealistic. He laid out the Government’s 10 clear objectives in its commitment to address the energy sector, with an eye on social policy.

Tariffs would have to be more affordable and closer to the EU average, as well as competitive.

Other objectives were to ensure a reliable supply of energy and to reduce emissions through the use of gas and other clean technologies.

Investment in renewable energy would be promoted in partnership with the private sector.

He said a number of initiatives had already been launched to encourage more responsibility and less wastage in the use of electricity.

A new capacity for the generation of electricity would be developed, the Marsa power station would be closed down for good andthe site would be given over to renewal with mixed development, the final objective being to create a sustainable future for Enemalta employees.

Besides working on its self-imposed schedule for the investment in gas technology, the Government was envisioning changes in the oil procurment system. The Auditor General had almost finalised a report on the lessons to be taken from the oil procurement scandal.

In the meantime, oil providers Total and Trafigura were blacklisted from procurement until police investigations were complete. Enemalta’s CEO had been tasked with looking at electronic options for more transparent oil procurement.

Following the drop in oil prices in the last few days, Enemalta was trying to lock down a good price until the gas plant was in place.

It was also looking into buying carbon emission credits at a low price before it went up, as the EU was encouraging countries to do.

Dr Mizzi said the Government was looking at better utilisation of EU renewable energy schemes.

A new photovoltaic panels scheme would be launched soon, together with a bid for EU funds for enhanced building energy efficiency. The Government was very committed to working with the private sector on solar energy, as well as to the use of roofs for PV panels wherever possible.

A national strategy would be launched in May to ease the many energy-related problems still riddling the Petroleum Division. He had instructed Enemalta to install environment-protective mitigating measures at the MOBC bunkers, currently closed, so that they could be reopened. The corporation had also received instructions on tanker refuelling at Birżebbuġa.

Dr Mizzi said the Government was committed to better management of water resources catchment areas, the sewage master plan, stormwater and reservoirs.

Financial estimates

Expenditure €’000