‘Smart City’ fast track for Labour’s gas power station - Mizzi

Labour candidate Konrad Mizzi defended the timeframes laid down by the PL's 'cheaper bill's energy proposals. He was speaking during a Q&A session broadcast on TVM, with the Labour chosen theme of 'Cheaper Energy Bills, Cleaner Air.'

Mizzi opened by recalling how three years ago Joseph Muscat handed him the energy brief, with the terms of reference calling for a better energy mix and cleaner air.

"Malta has some of the highest energy tariffs in Europe, and very low air quality, particularly in the south of the island. Malta also has one of the least reliable networks in terms of power outages. Enemalta is saddled with a debt of 800 million and loses a further 70 million per year. Clearly these problems need to be addressed," said Mizzi.

Mizzi categorically stated that the investment will be supported by the private sector.

"We have already tested the waters, and there has been a positive response," said Mizzi.

Mizzi was immediately pressed by the panel on the viability of the timeframes mentioned by the PL.

"I am confident that we can meet this timeframe. We are not buying a power station. Power generation is open to competition, the only reason why this has not been taken up is due to the barriers to entry erected by Enemalta," Mizzi answered.

"The expression of interest process can be undertaken in five months. During this process, two companies will be shortlisted, and we will go for the lowest cost option. As far as the environmental impact assessment goes, we will adopt the same position taken by the PN with Smart City. The PN undertook a 60 day review with investors," said Mizzi.

"All the studies have already taken place for the BWSC plant. The baseline cased effectively remains the same. All that has to be examined is the change in the baseline case. This process should take six weeks," said Mizzi.

"After this the private company will start putting the infrastructure in place. This should be an eight-month long process, which is the EU average. The biggest challenge is the PN, because they measure everything by their own laggardly pace," said Mizzi.

Pushed on why the PL has chosen the costlier option in comparison to the gas pipeline, Konrad Mizzi pointed out that the 9.6c per unit cost is already a massive saving on the 18c currently being paid.

"If we wait for the pipeline it will cost the country €750 million euro. We cannot wait that long for tariffs to fall. We have chosen a safe and flexible option that allows for a diverse choice of suppliers," said Mizzi.

Asked for a breakdown of the €187 million saving that the PL is projecting, Mizzi reiterated that it is not possible to pass on all the savings to consumers.

"€77 million of these savings will be passed on to consumers. Of this, €27 million will be passed on to private households. The rest is earmarked for industry. The remaining €110 million will go towards servicing Enemalta debts, and the private company will also have to have its fair share of the profits," said Mizzi.

On the health benefits of Labour's plan, Mizzi said that one of the reasons behind the high asthma rates and the prevalence of certain cancers in the south is down to the type of heavy fuel oil used at the current power station.

"Air quality in the south will improve drastically. We cannot wait seven years for cleaner air. The Marsa power station will be closed down completely, and a regeneration project will be carried out in the area," said Mizzi.

Faced with accusations of Labour scaremongering on health issues, Mizzi cited a study by the World Health Organisation, confirming that asthma rates are in fact much higher than the EU average.

"It is an unacceptable problem, we do not want to be the worst in Europe, we can to make a success out of our EU membership", said Mizzi.

"With the government's energy plan, nothing is going to change, all that we will have is the interconnector and the BWSC plant. Granted, the BWSC plant will be more efficient, but Enemalta is still set to lose €50 million per year", said Mizzi.

"Gonzi has no choice but to increase tariffs, otherwise Enemalta will be bankrupted."

On fuel prices, Mizzi stated that Malta has yet to benefit from a liberalised market.

Locking his eyes to the camera, Mizzi also reassured Enemalta workers with the words, "your employment is guaranteed."