Taxpayers to pay market price for power station's gas, PN says
Despite the government saying the price for consumers will not change, the burden of prices will be paid from taxes or loaded onto public debt, the PN said
The government's failure to negotiate any fixed price for the new deal for the purchase of gas has left taxpayers having to cover international market prices, the Nationalist Party said.
The opposition's statement comes after the government announced that Malta had secured an agreement for BP to provide Malta's supply of gas until May 2027. Malta's current deal with Socar was set to expire in August.
On Monday, Energy Minister Miriam Dalli said the cost of Malta's natural gas supply will vary in line with international markets, rather than follow fixed pricing.
"Despite boasting that an agreement had been reached with BP, Minister Miriam Dalli was forced to admit that the price the country will pay to ensure that, from August, we do not end up without a gas supply for the power station, will depend on the market price," the party said.
The PN said that while the government attacked the Opposition, alleging that it had led a fear campaign on gas supply and tried to boast it had taken a decision that guarantees stability, the Minister and Prime Minister had to admit that the price Malta will pay will be driven by the market.
"Goodbye stability," the statement read.
The PN also slammed the Minister for only giving an estimate of how much each unit of electricity from the interconnector costs today, yet failed to say whether there is an agreed maximum price ceiling should the market price of gas rise again.
"Although the Government is saying that the price for consumers will not change, the fact remains that the burden of these prices will be paid from our taxes or loaded onto public debt," the statement continued.
The PN said Dalli also confirmed that this deal is nothing more than what she herself described as a “stopgap”, and that, according to her, the Government has already started working on arrangements to purchase LNG after this agreement expires in May next year.
"What is certainly fixed is that now summer has returned, and that every day, there is a power cut somewhere," the party added.
The statement concluded that the government has no serious or long-term plan for the sector, and the government is operating through a policy of management-by-crisis. It added that if the government is "so proud" of the agreement, it should publish it in full.
PL statement
Replying to the Opposition's statement, the Labour Party called out the PN for once again trying to mislead the public.
"Enemalta already purchases its energy and fuel supplies at international market prices. For years, this government has absorbed fluctuations in global markets through substantial subsidies, protecting families and businesses from rising living costs," the statement read.
The statement said that despite ongoing volatility in international markets, Maltese and Gozitan consumers continue to enjoy complete stability in their energy bills.
"It appears that the PN is once again attempting to create unnecessary alarm in order to distract from the fact that it still lacks a shadow cabinet and is led by a leader who remains absent on the issues that matter most to the people."
It said that while the Opposition offers fear and confusion, the Labour government provides peace of mind and can guarantee stability in energy prices. It added how under Labour governments, Maltese families and businesses have benefitted from around €1 billion in energy subsidies.