'Our roadmap was the reduction of utility bills' - PM

Parliament will be updated on the current state of affairs of the government's energy project on Wednesday

Prime Minister Joseph Muscat (Photo: Ray Attard)
Prime Minister Joseph Muscat (Photo: Ray Attard)
Prime Minister Joseph Muscat on Labour's energy plan

Prime Minister Joseph Muscat this morning insisted that Labour's energy roadmap was based on the reductions of tariffs for households and business, a pledge which the government "is maintaining".

"Our biggest deadline was the reduction of tariffs, a pledge we are maintaining. The reduction in tariffs was based on a number of factors and the construction of the power station does not affect that," Muscat said, in reply to questions by journalists at the Malta International Airport.

He insisted that, although the construction of the power plant was a main block of Labour's energy plan, there were four contributing factors in all that made the decrease in tariffs possible.

Confirming that the delay in the construction of the power station was partly due to tripartite discussions between Enemalta, Chinese investors Shanghai Electric Power and ElectroGas Malta, Muscat did not elaborate on the points that needed clarification or amendment between the three parties.

"But when you include a new shareholder, it is only expected that tripartite discussions are required," he said.

Energy Minister Konrad Mizzi - currently in Beijing, China, finalising the transaction which will see Shanghai Electricity Power acquiring a 33% stake in Enemalta, with an investment of €320 million - will brief parliament on the state of the Labour energy plan.

Muscat also insisted that the government never gave a deadline on the construction of the power station but insisted the deadline was tied to the reductions. He also said the delay will be "of months" but failed to say by when. The Energy Minister, by end of November, is expected to give a target date for the completion of the project.

Asked why the new parliament's contractors were being fined daily for the delay in the opening of the parliament vwhile no fines were being imposed due to the delay in the construction of the new power station, Muscat said the parliament's contractors had given a date by which their work would be completed.

Government is currently negotiating a completion date for the new parliament.