De Marco: Labour utility tariff cuts financed by BWSC turbine savings
€25 million in reduced energy tariffs for households being financed by Delimara’s €52 million in generation savings every year.
The reductions in utility tariffs announced in this year's Budget, and to take place in 2014 for domestic households, had been made possible by the former government's investment in the Delimara power station, the Opposition said today.
Nationalist deputy leader for parliamentary affairs Mario de Marco and MP George Pullicino said that a weekly €1 million savings in the cost of electricity generation, was only thanks to the decision of the former administration to procure a new combined-cycle turbine from BWSC. The Delimara extension was the subject of great controversy due to the decision to run the new engines on heavy fuel oil, rather than diesel or gas.
De Marco said that up until March, the €62 million in savings would be financing the first €25 million utility rate reductions in 2014.
On Monday, Opposition leader Simon Busuttil had stated that it was an increased tax collection of €170 million over the last year, that would be financing the utility tariff cuts.
De Marco today said that from the €170 million increase in taxes collected, €72 million would be hailing from indirect taxes, namely €55 million in hiked customs and excise duties, and €17 million from licence fees.
The shadow minister for the economy asked whether the burden of some €142.5 million in petroleum duties, t go up from an estimated €119 million collected in 2013, will be passed on to Enemalta to finance if not to the consumer.
"This budget has little in terms of schemes that incentivises the creation of jobs. Encouraging people to go out to work is not enough... you need jobs to be able to fill them," de Marco said.
He added that industry schemes for renewable energy were missing from the Budget speech, saying a €5.5 million co-funded by the EU for renewable energy investment had been suspended for the past four months.