Muscat ‘confident’ private sector will come forward

Labour leader Joseph Muscat said his party's energy plan was "tried and tested" and a strategy that has already used abroad.

"Unlike the Delimara power station extension, this is not a prototype. I am also confident that the private sector will show interest and the enthusiasm to be part of this project," Muscat said.

Asked whether the Labour Party had a Plan B, Muscat said that this plan "would be doing nothing and allowing the utility rates to increase again. But this is not an option".

When pressed by journalists to say why he was so confident in the interest of the private sector, and whether this was a "done deal', Muscat said that there existed no such deal.

"But it is obvious that along the years we have been approached by various businesses and entities who have showed interest in this type of model. I cannot understand why all this sceptism about the private sector. And we are offering a good deal," he insisted.

Muscat said he would shoulder full responsibility of this energy plan. "Everyone will benefit from it, as we are seeing an injection of €77 million annually. Enemalta's debt will be addressed because we already have a commitment in parliament to do so."

He added that a Labour government would incentivise renewable energy and energy saving.

Muscat said that there were no hidden costs, and everything has been factored in in the calculation of the new utility rates.

However, Muscat said that the option of an offshore gas storage depot was not factored in. "This was something mentioned by the Nationalist government," he said, adding that a Labour government hoped that EU funds for the gas pipelines would be granted as it would "fit perfectly with the plan".

Muscat said that Enemalta would enter into a power purchase agreement with the investors of the new power station, fixing the price of energy for 10 years.

"This will guarantee the peace of mind to families and businesses. This will mean that one will not expect any surprise increases and the 25% reduction in utility rates will be fixed for 10 years."

Muscat emphasized that Enemalta will not be competing with the private sector, but will be entering a deal with the prospective investors. A request for tender, Muscat said, will be issued in May 2013 as soon as a Labour government would be elected.

He also said that there will be no increases in the rate of meter rent while two out of three families will benefit from a 30% reduction on their tariffs.

The Labour leader said a Labour government would also be closing down the Marsa power station and removing that chimney at the Delimara power station which is an eyesore.

"This plan is not only about reducing bills, but also about protecting the environment, the health of our families and regenerating the South. It's unacceptable that in 2013, the South is still considered as a dumping site.

"It's unacceptable that we find the highest rates of cancer and asthma cases."

On water tariffs, Muscat said that the PL will be unveiling more proposals during the coming days in which the party will also present its policies for the protection of water resources.

Asked why a Nationalist government never embarked on such a plan if it were so doable, Muscat said that this was a question that should be made to Prime Minister Lawrence Gonzi.

"But we have seen a government with a lack of planning, mismanagement. It doesn't deliver on time and has led to higher Enemalta debts," he said.