Energy mix percentages ‘to change according to price variation’

A gas-fired power station set to be completed by June 2016 would allow Malta to make use of a three-way energy mix with “percentages changing according to price variation”.

According to plans announced last year, around 50% of Malta’s required electricity will be generated by the ElectroGas consortium, while the BWSC plant – to be converted to gas by Shanghai Electric Power – would cater for 30%. The 200MW interconnector would provide for the rest of the 20% of the energy mix.

ElectroGas will supply Malta with gas for the next 18 years but it will be a technical committee appointed by Enemalta that will determine the dispatch function.

In parliament on Tuesday evening, Opposition leader Simon Busuttil insisted that Malta could now buy energy through the interconnector at a rate of 6c3 per unit – that is 66% cheaper than the 9c6 that energy from the new LNG power station would cost.

However, Muscat insisted that Busuttil’s calculation did not factor in a number of charges: congestion charges, trade scheduling charges, unbalance charges, dispatch fees, spinning reserve contribution, operations costs, maintenance costs, excise duties and insurance and transmission losses.

“The percentages of the energy mix will change according to price variation,” Muscat said this morning, when asked when the government was going to publish the contracts.

He went on to criticise the PN’s own suggestion that the use of the BWSC plant and the interconnector were enough to reduce tariffs.

“If it were so, then why didn’t the PN propose it in its own electoral manifesto? Instead, it suggested night tariffs. The reality is that the PN’s energy plan would only result in higher tariffs and increased pollution.”

In separate questions, Muscat defended the appointments of junior minister Chris Fearne’s mother and PL deputy leader Toni Abela.

“Mrs Fearne is an extremely competent woman who knows her field. Everyone who knows her and who has worked with her can confirm that. I believe in her competence and I believe in the good work she does,” a visibly exasperated Muscat said.

Asked about Abela’s consultancy services, Muscat said that “Abela is there just like Mario de Marco was given consultancies”. Pressed on Abela’s expertise in the oil exploration field, Muscat pointed out that Abela was focusing on international law.