Enemalta's debts have reached €835 million, Energy Minister Konrad Mizzi said in parliament this afternoon.
He also announced that the corporation is seeking to capitalise on a recent dip in oil prices to secure hedging agreements for next year and 2015 until the conversion of the power station to use gas.
Speaking in parliament during the Budget debate, Dr Mizzi said Enemalta last year made a loss of €70m despite the government subsidy.
The government, he said, had found various problems, including problems in oil procurement, a cost over-run of €26m in the interconnector project and significant delays in the smart meters programme, as well as technical problems with regard to some of the meters.
It was also discovered that days before the general election, the Cabinet decided to give Shell compensation of €5m as an out of court settlement of a dispute it had with Enemalta (over refuelling services at the airport).
Dr Mizzi said that without going into the merits of the case, it was a scandal that the former Cabinet had decided on this pay-out during the electoral campaign.
The former government, he said, had also prepared to raise tariffs after the general election, as also evidenced in a KPMG report.Malta, he said, had also fallen back significantly in its international commitments on clean energy owing to its reliance on wind-farm projects which had not materialised. The present government was focused on solar energy and the use of all factory and house roofs for this purpose and would announce a strategy in due time and invite private sector investment in related projects. A new scheme for the use of photvoltaic units would also be announced.
Plans would also be announced for gradual replenishment of groundwater sources, rehabilitation of reservoirs and better use of second class water. Dr Mizzi reiterated the government's pledge to cut energy tariffs by a quarter and water tariffs by 5% while closing Marsa and Delimara phase one power station and converting the rest to use gas. He said Enemalta was looking at its options to buy carbon credits as prices were currently low.
He said the MOBC site in Marsa is being upgraded in line with Mepa requirements so that in can be returned to operation. Enemalta has also been instructed to address EU rules on tanker use in Birzebbuga Bay.