Energy Minister Miriam Dalli does not believe Malta needs to consider building an electricity interconnector or gas pipeline to North Africa, contrary to views expressed by Joseph Muscat.

"Italy already has pipelines with Algeria and the East Adriatic through Sicily and its southern region of Puglia, so when we will be sourcing energy from Sicily with the second interconnector, we will naturally be tapping into these energy sources as well," she told Times of Malta.

She was speaking during a news conference at the Labour Party headquarters on Tuesday.

In an opinion piece on Times of Malta on Saturday, former prime minister Muscat said that existing plans to build a second interconnector and gas pipeline linking Malta and Italy will do nothing to reduce Malta's energy dependency on Russia.

Muscat's argument hinges on the fact that Italy and other European partners depend on Russia for around 43 per cent of their energy requirements. 

His opinion piece came a few days after Energy Minister Dalli gave an assurance that Malta is not dependent on Russian gas.

Dalli effusive about energy plans

On Tuesday, Dalli argued that having a second interconnector connecting Malta to Sicily will provide "diversification" of Malta's energy supply, contradicting Muscat's line of argument.  

Italy's Trans-Mediterranean Pipeline runs from Algeria via Tunisia to Sicily and then continues to mainland Italy. It can deliver more than 30 billion cubic metres of natural gas per year. 

A second pipeline, named the Trans-Adriatic Pipeline, opened in 2020 and connects Italy to Azerbaijan, with a route crossing through Greece and Albania.

Dalli went on to talk up the Sicily interconnector project, describing it as an ambitious step in the country's shift to renewable energy.

Having a hydrogen-ready gas pipeline will serve as an alternative source of energy when solar power fails to yield the necessary electricity supplies, without causing power cuts in buildings, she said. 

Price stability to be maintained

Dalli also insisted that the government will "ensure a stable price" of energy even once a hedging deal with Azeri energy firm SOCAR lapses at the end of next month. 

She did not, however, specify for how long that stability will be maintained, or whether she expects costs to rise.

"Enemalta is constantly analysing the situation and we are in a position to ensure a stable price beyond April," she said.

Malta generates energy through a gas-fired power station with a seven-year price hedging agreement on liquified natural gas drawing to a close next month.

The government last year promised to freeze utility prices, and the prime minister confirmed it again last month. Last week, Finance Minister Clyde Caruana said Malta has put aside €200 million until the end of the year to cover the spike in gas and utility prices due to the Ukraine war.

However, the government has so far failed to indicate for how long it intends to cushion energy prices, especially in the context of the intensifying conflict in Ukraine.

'PN wants to punish businesses'

During the news conference, Labour candidate Rebecca Buttigieg joined Miriam Dalli in criticising the PN's electoral proposals that 'force' businesses to conform with ESG (Environment, Social, Governance) guidelines.

Buttigieg said that Labour is in favour of businesses conforming to the guidelines, but unlike PN, it will incentivise them to do so, not punish them for not conforming.

Candidate Rebecca Buttigieg said a Labour Government will incentivise businesses, not punish them. Photo: Chris Sant Fournier.

Labour will support companies that aim to conform to the guidelines voluntarily," she said.

"And while they do it, we will still incentivise them with schemes and tax reduction, unlike Bernard Grech, who is only promising to help them once they're already ESG compliant - a process which could cost some €158,000 yearly.

"We will incentivise you until you get there, not punish you until you do."

She also said a Labour government will offer a free energy audit to small businesses - a process which she said could otherwise set back micro-companies some €2,000.

Miriam Dalli said PN's proposals will make it even harder for smaller businesses to compete with more powerful companies, because they will not be able to conform to the guidelines and enjoy fiscal incentives like the bigger ones. 

"PN's manifesto is peppered with terms and conditions," Dalli said.

"Our manifesto only has one condition - to vote for another Labour government on March 26."

"Our manifesto only has one condition - to vote for another Labour government on March 26," said Miriam Dalli. Photo: Chris Sant Fournier.