[WATCH] Updated | Nationalist Party will annul contracts on new power station - Marthese Portelli

Nationalist Party confident it will annul energy contracts signed by current administration

The Nationalist Party is confident that, once in government, it will be able to annul the contracts that the current administration had concluded with Electrogas on the new power station and its commitment to buy all the supply provided for the next 18 years, according to shadow energy minister Marthese Portelli. 

Portelli, who was addressing a press conference at the PN headquarters on Wednesday, said that any contract not signed in the public's best interests could be declared null and void.

"This is a matter of joining the dots," she said. "Why doesn't the government publish the contract in its entirety? It's because the government knows that the people will not like it."

When asked by MaltaToday what would happen if a PN government discovered that - for some reason or other - they could not cancel Electrogas' contract, Portelli insisted the PN would still offer consumers electricity purchased at the cheapest price possible.

As to whether this would mean that the government would be prepared to make a loss and offer electricty to consumers at a cheaper price than purchased, she reiterated her party's position of purchasing supply from the cheapest source.

She claimed that the deal made by the Labour government will result in a €100 million loss each year due to the fact that the current administration negotiated 9c6 per unit of energy purchased from the power station, while a unit of energy from the interconnector cost 4c5 cents on average.

It was unheard of that the government had also bound itself to buy all the output supplied by Electrogas for the next 18 years at a higher price than was available elsewhere, she said.

When pressed, Portelli said that the party's energy strategy for when in government was still being drawn up. 

Marthese Portelli and PN election candidate Aaron Micallef Piccione

The party's main argument, she said, was that there was no need for the new power station since the country was already well-served in the provision of electricity, with 200MW generated through the interconnector, 150MW through the BWSC power plant and a further 50MW generated throught photo-voltaic solar farms.

"With 400MW of energy, the country is already receiving the supply it needs, especially the highest demand recorded in the peak month of August was around 376MW," Portelli said.

She pointed out that besides these sources, Malta was capable of generating a further 60MW through the Delimara Phase 2A two gas turbines and another 100MW through the Phase 2B's two gas and one steam turbine.

"Furthermore, Malta is currently utlising around 80% of the interconnector's full capacity," she said. "And we are also committed, under EU programmes, to raise our output through PV farms to a minimum of 120MW by 2025."

Government reaction

In a reaction, the government said it was only because of the switch to gas that old power stations could be decommissioned, resulting in lower emissions.

It accused the opposition of not being trustworthy on matters of energy, adding that when the PN was in government, not only were tariffs not reduced, but the power station was run using the fuel with the highest emissions.

The government stressed that the reduction on electricity tariffs was based on a seven year plan based on the planned shift to gas.

“Today, the opposition once again showed that it is using its own yardstick when it directs unfounded allegations at the government. The real corruption was to be found in the commissions that were being paid for oil,” read a statement.