Enemalta’s €835 million debt situation confirmed – energy minister

Energy minister Konrad Mizzi has lamented over the "string of problems" left by the previous administration in the energy sector, not least Enemalta's  €835 million debt and the €70 million loss made by the state utility's electricity division.

Mizzi said the Enemalta oil scandal also resulted in huge oil purchasing problems while the rollout of smart meters fell behind.

Addressing the House of Representatives, Mizzi said that he had instructed Enemalta to look at the possibility of "electronic auction" for the purchasing of oil.

Referring to the news first revealed by MaltaToday, Mizzi also said that the €5 million out-of-court settlement with oil company Shell had also left a huge impact on the company's financial situation.

"This is not on and is a scandal in itself," Mizzi added.

The settlement came nine years after complaints made by oil company Shell in 2004, leading the European Commission to issue a warning to the Nationalist administration in 2011 that it was "not ensuring independent verification of the separation" of fuel handling and storage facilities, while Enemalta - one of the suppliers of fuel handling services - was the manager of the storage and fuel supply facilities.

The energy minister reiterated there had been "clear commitment" by the PN administration to increase utility tariffs, while it had no plans on addressing the state utility's sustainability.

Mizzi said Malta was also behind in its 10% renewable energy target with wind energy projects not only having fallen behind but also lacking serious foundations.

He said, the government was also working to lock a favourable oil purchasing deal now that the price of oil decreased by $3 per barrel.

He also said that Enemalta would this year start paying for carbon emission. With the European Union encouraging for an increase in price, the government was seeking to purchase now the carbon credits.