Updated | Mizzi insists consumers getting good deal out of fuel hedging policy

Energy minister Konrad Mizzi has insisted that the government won't change its fuel hedging strategy, despite the global market price of crude oil hovering close to $30 a barrel.

Responding to questions at a press conference, Mizzi urged for caution in making direct comparisons between the local price of fuel and the market price of crude.

"One must take into consideration the refining costs and the fact that the oil market prices are quoted in dollars, whereas Malta buys in euro - which has weakened to the dollar," he said.

He described the states fuel policy as one based on price stability, with reductions coming in three-month intervals. He noted that consumers have already benefitted from ten reductions in fuel prices, with the next one set for April.

“Petrol in Malta is cheaper than the EU average, Enemed is making normal-sized profits, and intends to launch higher quality fuel and diesel in the next few months,” he said.

During the press conference, Mizzi announced that Enemalta will as of March start repaying €5.4 million in outstanding feed-in tariff arrears to around 17,000 households and businesses that have installed photovoltaic panels.

These customers will receive their tariffs directly into their bank accounts, and will be notified by SMS when the transaction is completed. Feed-in tariffs will be applicable once the customer has paid two electricity bills, down from the current four.

Mizzi said that these changes have been made to reduce bureaucracy, and encourage more people to invest in renewable energy.

“The current process is too bureaucratic, and indeed consumers often have to wait up to two years before being applicable to receive feed-in tariffs,” Mizzi said. “Through this simplified system, clients will no longer have to apply in writing for every single feed-in tariff, and every tariff due will be automatically transferred to clients’ bank accounts.”

He added that such changes have only been rendered possible thanks to the current government’s decision to restructure Enemalta and its subsidiary company Arms Ltd.

“Now that Enemalta is back on its feet, the time is ripe for it to start improving its services. Just as consumers are obliged to pay electricity bills on time, these changes will ensure that Enemalta also pays its dues to consumers on time and without exaggerated delays.”  

‘People paying for corruption through high fuel prices’ – PN

Shadow energy minister Marthese Portelli in a reaction said that households and businesses are being forced to pay for the government’s corruption through high fuel costs.

“The global price of oil has slipped to $30 a barrel, less than a quarter of what it cost a few years ago, and yet fuel prices cost the same as they did back then,” Portelli said in a statement. “Diesel in Malta is the fourth most expensive in the EU, while petrol is the 8th most expensive. Mizzi’s announcement that fuel prices will decrease in April means that the public will continue to get robbed at the pump for at least under ten weeks.”