PM defends Azeri deal: ‘We want people to pay cheaper prices’

Prime Minister Joseph Muscat defended direct ministerial intervention to hedge fuel with Azeri company SOCAR, insisting that the consumers would have ended up paying higher fuel prices.

Muscat was addressing a political activity in Marsa, which focused on the switching off of the 62-year-old power station.

“We used to criticise others for not doing anything … and they criticise us for actually doing something,” Muscat said.

Referring to the report of the Auditor General analysing Enemalta’s fuel hedging, Muscat insisted that lack of action would have resulted in higher fuel prices. Enemalta had failed to reach favourable arrangements, and when the government realised that prices would go up by 2c, Energy Minister Konrad Mizzi intervened.

“We have nothing to hide and the Auditor General, as is his duty, carried out an investigation. Doing nothing was the easiest thing we could have done. Instead, we intervened to defend the interests of families and businesses.”

Admitting that the government had turned to Azerbaijan and encouraged Enemalta to negotiate with them, Muscat insisted that he would continue to defend consumers’ interests.

Muscat insisted that his government had worked for the south more than any other government ever did in all those years.

“The closing down of the power station was the biggest environmental achievement the south could have ever reached. We are one step closer to the implementation of our energy plan,” Muscat told the party faithful.

“The environment doesn’t belong only to those who voice their opinion in the newspapers but it belongs to everyone. To those, who for decades suffered more than enough.”

Following the commissioning of the interconnector and a gas-fired power station in Delimara, Muscat said the government was committing itself to regenerate the south.

“Join me in my dreams for the future of Marsa,” he told the residents, as a camera zoomed in on the audience sitting behind the PM, that included former Nationalist mayor and John Dalli aide, Frank Zammit.

Labour MP and chair of the South Consultative Council Silvio Parnis praised Muscat, saying that the PM held the people living in the south of Malta “at heart”.

“The residents are now enjoying of cleaner air thanks to the government’s commitment to switch off the power station,” he said.

The official switching off ceremony of the power station took place yesterday, coinciding with the deadline the PL in opposition had set for the switch to gas. The finalisation of the new power plant is now expected by June 2016.

Parnis said the consultative council was pushing for the development of a commercial hub in the south, whilst reiterating a commitment to turn Marsaskala into a tourist destination.

He said that the council had reached a deal with a private company to plant 150 “presentable trees”, valued at €10,000. Parnis said the trees would be planted at Eden Garden, next to the chapel at Bir Miftuh.

“Miracles were carried out in these two years. Let’s continue working for more,” he said.

Environment Minister Leo Brincat said that, while the Opposition was taking lightly the switching off of the Marsa power station – it is currently reminding the government that it should be inaugurating the new one – the European Commission had repeatedly warned Malta over the operation of the old power station.