PN says energy distribution should be liberalised

The Nationalist Party is proposing the "liberalisation" of Malta's energy distribution network as a part of a nine-point plan to strengthen the country's energy infrastructure.

Addressing a press conference on Friday, PN Leader Bernard Grech said that the power cuts experienced in the past week were due to a lack of planning by the Labour administration. Grech said that after a decade in power, government not only did not invest sufficiently in the energy infrastructure, but artificially increased the population significantly, causing a rise in demand for electricity.

The Opposition Leader stated that the PN's plan comprises nine points, the last of which references the liberalisation of the distribution network.

Energy Spokesperson Mark Anthony Sammut explained the PN's plan for the energy sector, starting with significant and rapid investment in the distribution network. Sammut said that the PN would prioritise the concept of placing three cables for every two cables that are essential, which would mean that if a cable fails, another would take its place immediately.

The second point of the plan is to collect information from smart meters, so that areas with low or unstable voltage could be identified and addressed in a better manner. 

Sammut explained that the PN would impose a 99.5% rate of efficiency on the energy provider, as well as automatic compensation procedures for every household which suffers from 12 hours without electricity, or 24 hours in case of heavy storms. Here, Sammut said that the regulator should have the necessary power to take action in case of failings from the energy provider. Additionally, he stated that the regulator and provider should see that no consumer spends more than 44 hours without energy every year.

The fourth point Sammut explained was the revision of the procurement process related to energy distribution, where government would not only consider the price of the infrastructure needed, but would heavily focus on quality as well.

Another four points made reference to measures that decrease the peak load.

One of them, Sammut explained, had to do with incentives that increase the efficiency of buildings, including better insulation, as well as better incentives for photovoltaic panel installations.

The sixth proposal is related to lowering the rent of roof spaces for companies that occupy rented industrial parks, in order to incentivise the installation of solar panels.

Sammut stated that the PN also proposes the installation of storage batteries in critical places throughout the distribution network, which would lower the peak load. He explained that this would also be open to the private sector, and would be integrated with clean energy production.

Additionally, the PN stated that it would introduce rates that incentivise the use of energy during off-peak times, similar to incentives that already exist for electric car charging.

The final proposal for better energy distribution is the "Liberalisation of the energy distribution market," which would permit private investment in this infrastructure, leading to "competition and efficiency." Sammut made reference to the fact that until 2027, Enemalta is to be the only transmission and distribution provider. He explained that while it does not make sense to privatise the transmission of the energy sector, the distribution, which brings energy to consumers, could be privatised.

Meanwhile, Infrastructure Spokesperson Ryan Callus stated that these proposals would ensure that the investment made in the enrgy sector reflects the size and growth of the economy. 

Callus lambasted government for blaming the latest power cuts on the PN, which has not been in power in 10 years. 

"Our current infrastructure is not future-proof. It's not even capable of meeting present-day demands," he said.