[LIVE] Mizzi addresses Fenech's doubts on Labour proposals

18:20 Mizzi closed the press conference by saying that the past mistakes in Malta's energy generation were committed because the Nationalist administration was focused on taking decisions in the interest of a small minority, while the Labour government will work in the national interest and in a manner that will guarantee more affordable energy, cleaner energy, and a source of energy that will lead to healthier air quality.

18:17 Mizzi also dealt with Labour's proposals on renewable energy. "Our proposals mean that we will surely reach our 4% renewable energy target by 2020," Mizzi said. He added that Labour would give the private sector space to work in this regard. Mizzi explained taht the project would site panels on available spaces such as factory roofs and sheds, as well as unused quarries. He reiterated that every family without roof access will be able to invest in 'collective' renewable energy generation initiatives.

18:16 Mizzi was also asked to annount for the siting and the locations for gas storage tanks, as well as its impact on the residents living in the vicinity. Mizzi said that two tanks will be built, with a capacity of 30 metres cubed each, and a diameter of 20 metres. He said that the residents of M'Xlokk will welcome the project because the chimny will be removed, and air quality will improve as a result.

Mizzi added that Labour's position is that government should have opted for a power station extention that uses gas, and not heavy fuel oil. "If it had, today we would have better air quality, an assured supply, and cheaper energy tariffs."

18:12 Mizzi said that the EIA on the BSWC plant took into account several studies, including gas. He said that the study showed clearly that the study found that gas is the most desirable, adding that further studies can be carried out within a short timeframe.

Mizzi added that Labour will be unveiling its own documentation, aside from those figures that have a commercially-sensitive element and which affect the private sector, such as profits. "It is very normal with these agreements."

18:10 Mizzi also reiterated that the proposed 9c6 energy generation price will mean a saving of, in total EUR 187 million, 77 million of which will be passed onto the consumer, while EUR 110 million will go towards Enemalta's finances and the private sector. 

18:05 Asked by NET TV journalist to be clear on whether Labour has any agreements in the bag, Mizzi said that "no we have no agreements. There will be a competitive process. What is decided is the system we will adopt, which is the power-purchasing agreement."

Mizzi also said that Labour's project is justifiable is because the Maltese people need cheaper utility bills now, while the interconnector has yet to begin construction.

18:02 Asked by Maltatoday journalist Miriam Dalli to give examples of Labour's proposed power-purchasing agreements, Mizzi said that these "exist in several countries. There are dozens if not hundreds such agreements in the UK," Mizzi said, adding that the agreement is "a common practice" which anyone "can google on the internet."

Mizzi also said that while the whole power-purchasing agreement is, in total, for 25 years, it is however structured on a 10 year + 6 year +3 year + 3 year basis, which will allow the agreement to not be renewed at these stages.

18:01 Mizzi said that the current administration track record on energy investment, energy generation, and renewable energy performance, "are not acceptable."

17: 59 "We have a plan. We have the resolve to carry it out. We have no agreement with any energy supplier. We will not be buying energy from a supplier off the yellow pages. Those are Fenech's standards," Mizzi said.

17:58 Mizzi also insisted that the LNG terminal is "safe" and will provide the opportunity to purchase gas from any supplier, as opposed to the Interconnector which will allow energy purchasing solely through the Sicilian link, a factor that the interconnector depends upon.

17:56 Mizzi said that Fenech's planning on capacity will mean the same for the country as the construction of Mater Dei: "A few years alter, the country will realise that the capacity is not enough, and electricity outages will become a daily occurrence."

17:53 Mizzi also addressed the issue of capacity, saying that the current 700MW stands at. "We will close 370MW of it, through the closure of Marsa and Delimara Phase One. With our new proposal, the capacity will go up to 724 MW. This capacity will take into account the growth in demand, while also providing a reserve that conforms to the EU average energy capacity reserve."

17:50 Mizzi also dismissed the idea that Labour's proposals are not credible, pointing out that the Nationalist administration record on capital investment, such as the Mater Dei Hospital, was completed far beyond the established deadline and grossly exceeded its budget.

Addressing Fenech's doubts on the power-purchase agreement, insisting that Labour's proposal will mean a serious and guaranteed uptake by the private sector:

"The forecast for the private sector will be very reasonable. It can plan ahead. Its risks are mitigated. And so we can guarantee that we will be able to enter into an agreement for 25 years."

17:48 Mizzi said that government has so far not allowed the private sector to enter the energy-generation market, something that Labour would reverse.

"Our model is not to carry out public procurement to buy a new power station. We will remove the barriers to entry. We will let the private sector invest. And then we will buy the energy from them," Mizzi said.

17:47 Mizzi heaped scorn on Fenech's claims that Labour's figures were grossly underestimated, insisting that his claim is "laughable".

17:45 Mizzi said that based on these workings, Labour obtained the energy generation cost figure of 9c6, compared to the 18c cost of production as it stands today. Mizzi reiterated that this will result in in a saving of EUR 184 million. 

Mizzi added that DNV Kema were directed to adopt a cushioned gas price, so their estimates were based on conservative estimates. He also insisted that the capital investment costs on the infrastructure that the project requires are included in the price, and added that Enemalta does not need to own the ships that transport the gas, but can simply pay the shipping costs related to the transportation of the gas.

17:43 Mizzi said that based on these figures, Labour had decided that the way forward would be to convert the powerstation to run on gas, while keeping the BSWC phase 2 working on heavy fuel oil in case there are problems with gasoil supply.

17:42 Mizzi said that DNV Kema studied options such as whether to convert the BSWC plant to gas, and also whether to convert the BSWC phase two plant to gas. He said that DNV Kema also provided figures regarding the cost of energy generation at different levels of operation.

17:40 Addressing the issues that Fenech raised during his press address, Mizzi said that the energy consultants DNV Kema were given clear objectives that Malta would not remain dependent on oil and needed to change to a cleaner energy.

He said that Labour has been transparent by publishing the fact-finding sheet that they commissioned form the energy consultants.

17:39 Konrad Mizzi takes the podium to address the criticism that Labour's proposals are facing.

He said that Finance Minister is coming across as panicked and flustered. He added that Fenech was briefed by Austin Gatt for this press conference.

17:38 "The choice remains clear. Either the Labour party, which will lower utility bills, or the Nationalist Party, which will raise utility bills," Vella said.

17:35 Vella also underlined Enemalta's financial situation: its hefty debt, repeated downgrading by credit agencies, and its annual deficit, which he laid at the feet of the Nationalist administration.

17:34 Vella also hit out at the PN Government's track record on renewable energy, saying that Malta has remained dependent on oil prices, and that Malta has not yet fulfilled but a fraction of our obligations on renewable energy quota.

He added that the Nationalist administration has lost all credibility on energy, given its inconsistency on the viability of gas as a fuel source, as well as renewable energy sources such as wind energy, and the location of a wind-farm.

17:32 "We have been waiting for a serious energy policy for several years. This government's only answer has been to raise energy prices for households, families, and businesses instead," Vella said.

17:30 Vella said that the conflicting positions shows that the party cannot coordinate its own speakers or message given that several positions have been forthcoming.

He said that when the press conference was announced, the PL was expecting the PN to come forward with its own proposals on how to reduce the utility tariffs, following Gonzi's pledge on Wednesday evening.

"The presentation was very amateur with contradictory statements, and it seems like the minister understood nothing of out proposals."

Vella said that Labour's position remains unchanged, in that its proposals will mean cheaper energy as from 2014.

17:29 Vella said that over the past 24 hours, the Nationalist party changed stance around four times. he said that Fenech started doff by saying that the proposal is not possible. Busuttil said that the proposal is the 'gimmick of the millennium' and yesterday evening, prime Minister Gonzi said that government is committed to lowering energy bills.

Vella said that now, Fenech has confirmed that the project is possible, within four to five years. This, he said, shows that the government is in a state of panic.

17:28 Karmenu Vella kicks off the press conference by welcoming Finance Minister Tonio Fenech's confirmation that the project is doable but not before four or five years.

The Labour Party will be holding a press conference shortly to reply to the questions and criticism raised by Finance Minister Tonio Fenech over the Opposition's energy plan.

Contacted by MaltaToday, the PL's communications office said that "all questions raised" will be replied to in a press conference to be held shortly at the party's headquarters.

"We don't need 48 hours to come up with an answer and we will be answering Tonio Fenech's points one by one," the office added.

The press conference is expected to be addressed by the energy plan's main sponsor Konrad Mizzi and the Labour's spokesman for economy Karmenu Vella.