Energy minister Konrad Mizzi said this morning he planned to introduce changes to the Enemalta oil procurement process.

He also revealed that costs connected to the power interconnector with Sicily are expected to over-run by €26 million.

Speaking on TVAM, the minister said there could be various reasons for the interconnector cost increase, including route changes. The project will cost over €200m.

He said the government remained committed to reducing power tariffs, starting with domestic clients, within a year.

He said there had been interest by some companies in the projected new power station before the general election, and that interest had grown when the new government took over. Several embassies had also sought information on the call for expressions of interest and they were being given the necessary information.

Timelines were being worked out, but the plan was to allow some five months from the expression of interest to processing and evaluation.

Dr Mizzi explained that Enemalta workers would be assigned to work in the new power station built by the private sector. They would remain on Enemalta’s books and be paid by Enemalta, which would then be reimbursed by the private operator.

Dr Mizzi said he would like to see closer controls on the financial operations of Arms Ltd, particularly better defined policies and a reduction of discretion in the manner of handling of billing complaints.

He said he planned to bring in changes in the oil procurement process. Referring to yesterday’s judicial protest by oil giant Total, Dr Mizzi said the Enemalta position remained that companies mentioned in the oil procurement scandal should not be allowed to bid pending investigations.

Dr Mizzi said the changes to the procurement process were aimed at attracting more bids, bringing in greater transparency, and achieving better prices.

Dr Mizzi said the scheme for investment in photovoltaic panels would be launched shortly. Existing contracts and the feed-in tariffs would be unchanged.