Energy shadow minister George Pullicino estimates that power tariff cuts for most people will be closer to 20 per cent rather than the 25 per cent claimed by the Government.
Opening the debate on the financial estimates of the Ministry for the Energy, he said that, based on the Government’s figures and including the eco-reduction, his calculations showed that a single-person household would save €80 a year, exactly what the energy minister’s wife earned in an hour.
A household of two people would save €101 per annum, which was less than what the increase in the price of cigarettes would cost a single person.
Mr Pullicino said the tariff reductions were possible thanks to the savings made from the BWSC power plant and the interconnector, with the first saving Enemalta €1 million a week in oil purchases.
By March, the savings would have reached €64 million but the Government was only cutting tariffs to the tune of €25 million.
He said the Government had rendered the Malta Resources Authority so ineffective it remained mum “on the selling of Enemalta stakes to the Chinese”.
Labour had promised that Enemalta would not be privatised, yet, they entered into “a secret agreement” with China with no expression of interest and no competition.
A two-person household would save €101 per annum, less than the increase in cigarette price would cost a single person
Why was a copy of the memorandum of understanding not yet been tabled in the House despite repeated calls by the Opposition? Was Shiv Nair involved in this agreement with China?
Was Konrad Mizzi’s wife, Sia (now a consultant to the Government) involved?
While the liquefied natural gas (LNG) plant in Delimara was Labour’s electoral battle cry, it had already changed tack on two important points which the Nationalist Party had told them were not feasible.
Instead of a 10-year contract, it was now going for a five-year one and it was increasing the amount of storage required.
Another broken promise was that the power station would be switched immediately to diesel instead of HFO. Yet, they had already asked for two extensions from Mepa, so it seemed the BWSC was no longer a “cancer factory”.
Mr Pullicino said it was shameful that the minister described the strategic environmental assessment as a waste of time when not carrying this out was a clear breach of the law. The scheme for investment in photovoltaic panels for industry was withdrawn while the feed-in tariff was reduced. There was no plan to create green jobs even though there was interest from the private sector to invest in offshore wind energy.
The Opposition spokesman on investment, Mario de Marco said both political parties agreed that the country should go for energy generated by gas.
The PN Administration had opted to have a gas pipe connecting Malta with Europe while the PL believed that having a gas power station was a better option.
The EU confirmed that the gas pipe project could be co-financed by the EU and the Government did not exclude resorting to it.
Dr de Marco said there were those who ridiculed the night tariff, which was essential for hoteliers, industrialists and shopkeepers. The scheme should be debated from a technical point of view.
He said that the Opposition could not agree with the way the Government “sold” part of Enemalta to the Chinese.
While such a deal might be beneficial, the Government could not enter into agreements with other countries behind the people’s back.
It was a positive measure to cut utility tariffs to families, however, one should also incentivise the industry to be more competitive and innovative.
Also contributing to the debate on behalf of the Opposition were Charló Bonnici, Tonio Fenech, Toni Bezzina and Ryan Callus.