‘Our energy proposals are credible, realistic, and achievable’ – Muscat

Labour leader Joseph Muscat reiterated his claim today that Labour's plans for up to 35% in reductions for household utility bills were "credible, realistic, and achievable."

Muscat said an average of 25% in cuts in tariffs were guaranteed through Labour's plan, which involves the conversion to gas from heavy fuel oil to fire the Delimara power station turbine.

"27,000 households composed of elderly pensioners, live-in couples and other vulnerable householders will benefit from reductions up to 35% on their energy bills," Muscat said.

The Labour leader said that as many as 103,000 other households will receive savings amounting to 30% on their energy bills. "We have thought of workers, families with children, and we are also insisting on savings of up to 25% on average for everybody else."

Muscat said the business sector will similarly enjoy a reduction on energy costs, saying that businesses, self-employed, hotels, factories, retail outlets, and restaurants will benefit from the 25% reduction.

The energy tariff reduction for families and households will be implemented within the first 12 months of a new Labour administration, Muscat said, while the reduction for businesses will be implemented in the 12 months that follow.

This will mean an injection of €77 million into the economy, largely through the disposable income that families will gain as a result of the saving on energy bills.

He also said that as a result of cheaper energy generation, water prices will similarly drop, while adding that water was a very scarce resource that needed to be safeguarded.

"This reduction [in water prices] will be of 5%," Muscat said, adding that the saving will stem from investment in infrastructure that gathers and stores water.

Further savings ogf €187 million would be made through an alternative energy generation plan that Labour is proposing. Of that €187 million, €110 million is being earmarked to make good for Enemalta's €800 million debt, which Muscat said the current Nationalist government had allowed to accumulate over the last 25 years.

Muscat also reiterated assurances he had given that the cheaper-energy tariffs plan will not mean any new taxes, and that Enemalta workers's jobs were safe "unlike others who first gave such guarantees to Drydocks workers, GO plc workers, Air Malta workers, and Sea Malta workers, only to later turn on them."

He said Labour's energy plan will end Malta's dependence on heavy fuel oil, "the most polluting type of oil in the world," adding that Malta's aspiration as the leading EU country cannot afford a dependence on such a polluting source of energy.

Muscat also underlined the health impact of heavy fuel oil, and its severe adverse effects on air quality. "Even if it were not financially desirable, our children's and our health come first."

Muscat emphasised Labour's commitment towards renewable energy technology, saying Labour will uphold existing photovoltaic energy initiatives, and implement new programmes that render solar panel systems more affordable and yield greater returns for producing solar energy in homes; as well as plans to establish collective solar panel projects where households without roof access can invest for a return from renewable energy sources.

The Labour leader hit out at Prime Minister Lawrence Gonzi's reaction that the government was already considering gas-based energy generation. "If he was thinking about it, then why didn't he do it?" Muscat asked, saying the government still opted for heavy fuel oil despite its claims of having considered gas.