Updated | PN challenges government to hold debate on Shanghai energy deal

The opposition has called on government to hold a frank debate on the energy deal with Chinese firm Shanghai Electric.

This follows reports that despite signing a deal which saw the Chinese firm take over the power plant, Enemalta was paying an undisclosed sum of money to Shanghai Electric to use the BWSC plant in Delimara.

Pointing out that government had so far ignored its repeated pleas to have such a debate, shadow energy minister Marthese Portelli reiterated the Nationalist Party’s calls to have all contracts signed with Shanghai Electric and Electro Gas published.

During a press conference, when asked if the PN would abscond the contacts signed, Portelli insisted that the consumer has the right to a fair price.

Portelli also commented on the government’s silence on allegations that the Delimara Power Station was being run once again by Enemalta.

“The fact that the government did not deny the allegations is a clear sign that it is not only operating the Delimara power station, but that it is paying Shanghai Electric,” she said.

The government sold the plant to Shanghai Electric for €100 million in December 2014.

In a reaction, the Office of the Prime Minister – now responsible of the energy sector after it took in Minister Konrad Mizzi – said that the investment from Shanghai Elecric has generated economic growth in Malta.

“Investments from Shanghai Electric turned Enemalta into a profit-rendering company which has invested in the distribution system in Malta as well as abroad,” the OPM said, before outlining the government’s other achievements in the energy sector, including reducing bills by 25% and changing over from heavy fuel oil to gas.

“Over the past three years, we reduced energy bills to the fourth lowest in Europe, reducing emissions by up to a million tonnes, creating a modern plant which runs on gas, investing €320 million in Enemalta - thereby cutting its debt in half - initiation of the changeover to BWSC gas, closing down the power station in Marsa, tearing down the chimney in Delimara and reaching the interim goals for renewable energy.”

Together with shadow economy minister Claudio Grech, Portelli called on prime minister Joseph Muscat to hold a debate about the contract for the new gas power station.

“The Opposition tabled a motion in parliament a year ago to have this debate, yet it has not happened. This only goes to show the lack of transparency in the energy sector,” Portelli reiterated.

Grech emphasised the significance that such a debate is based on fact, not speculation.

“The government is obliged to present these facts in order for the government, the opposition and the social partners can evaluate the events that took place and that are taking place, and to evaluate how to improve on them,” Grech said, adding that every decision taken in this sector has a long-term impact and thus, a wide consensus on decisions is preferable.

Grech concluded by appealing to the government to hold an informed discussion in parliament where politicians and social partners are to be presented with the sufficient information in order to move forward with the debate.