WATCH | Energy minister questions credibility of PN energy plan

Energy Minister Miriam Dalli has questioned the credibility of the Nationalist Party’s energy plan, insisting that the “numbers do not add up”.

The minister was reacting to the PN’s announcement on Monday that it will cut household electricity bills by an average of 30% through a combination of measures that would total €30 million. The PN plan includes the removal of the annual meter charge, a change in electricity bands and other tweaks to the billing system. The €30 million expense would be recouped through energy savings from a one-off investment of €60 million in solar panels on public buildings.

But in a pointed reaction, Dalli said the prospected €30 million in savings as a result of solar panel investment was based on mistaken calculations. “From our calculations, the amount of energy they are prospecting will barely produce half of the savings they are claiming,” Dalli said.

She cast doubt on the claim that the €60 million investment in solar panels will be recouped in two years, insisting that even with the government grant scheme it takes seven years to recoup capital expenditure.

“Even if we were to accept these wrong numbers that add up to household savings of €10 per month, this does not represent a 30% reduction in electricity bills,” Dalli claimed.

She also hit out at what she described as the “confusion” over the PN’s stand on energy subsidies. The PN has committed itself to retain the subsidies for as long as they are necessary but Dalli cited past comments by the Opposition leader who had described subsidies as “short lived”, and PN MP Adrian Delia, who had claimed renewable energy costs would be so low that no subsidies would be necessary.

She insisted the Labour Party’s energy plan was credible since it was tried and tested. Dalli said a Labour government would provide price stability, renewed investment in the distribution network and diversified sources of generation.