Updated | Playmobil to save close to €1 million annually through tariff cuts

Playmobil Malta Ltd is set to save €900,000 annually in water and electricity tariffs thanks to the upcoming tariff cuts to businesses.

“Our company is heavily dependant on electricity and we consume up to 28 million kilowatt hours of electricity annually, far more than we used to consume in the past due to our company's expansion,” Playmobil CEO Matthias Fauser said. “The upcoming tariff reductions will save the company about €900,000 a year in electricity tariffs.”

Playmobil is a manufacturing company that employs close to 1,000 people and produces 2.7 billion Playmobil figures every year. Fauser said the company’s utility costs had increased from €1.6 million in 2007 to €3.9 million.

Fauser said the measure was “a step in the right direction” for the manufacturing industry in Malta to improve its competitiveness.

In total, businesses will be saving €50 million a year.

During a visit at the factory, Energy Minister Konrad Mizzi countered accusations by the Opposition that the 2015 Budget did not address the needs of the manufacturing sector.

Mizzi said that the 25% reduction in energy tariffs would be a huge boost to the sector. He said that these business savings would result in economic growth that would continue help finance the tariff reductions.

"The manufacturing sector is so important to Malta's economy and we want a significant portion of Malta’s GDP to come from it," Mizzi said. "I appeal for political consensus on this matter."

Playmobil Malta has also invested heavily in green energy measures including photovoltaic panels, water re-use and heat capturing.

“It is now up to the Government to do its part and the reduction of 25% in utility rates is one of the measures aimed at improving the competitiveness of the manufacturing sector,” the minister said, adding that the savings will allow companies to invest in new machinery, training and hire new employees.

New gas power station deadline to be announced in coming days

Mizzi said that the construction milestones for the gas power station, including its completion, would be announced in the coming days.

He also categorically denied that Gasol, a member of the Electrogas consortium, was facing financial difficulties and that these were the cause in the delay of the gas power station’s construction.

The minister explained that the delay was caused by a need to reach a synthesis in operations between Electrogas, the interconnector, Enemalta and Shanghai Electric Power.

Mizzi also reacted to the Opposition’s criticism that fuel prices had not changed while oil prices hit a record low. Referring to recent Eurostat data, Mizzi said that fuel prices on the Maltese islands remain below the EU average.