Finance Minister Tonio Fenech said tonight that although fuel costs have increased for Enemalta, the power tariffs will not rise next year because the higher costs will be offset by efficiency  gains at the new Delimara power station extension.

He said that Enemalta will buy oil for no less than $99 per barrel in 2012, which is 30% higher than the price which was used to determine the current tariffs.

However, the Delimara power station extension, which comes on stream early next year, will yield savings of €20m on fuel which will be passed on to consumers, thus ensuring that tariffs will not have to rise.

He said that work will  also continue in earnest next year on the power cable interconnector to Sicily, further reducing Malta’s dependence on oil for power generation.

The government, he said, is considering an investment in a natural gas pipeline from Europe, which will be co-financed by the EU.