Energy Minister Miriam Dalli on Thursday said the government does not plan to raise energy tariffs, despite mounting costs on Enemalta.
Fielding questions from the media after a press event, Dalli said the plan is to retain price stability.
A report by credit rating agency S&P highlighted how the government has resorted to compensating Enemalta monthly for the losses it is making due to the price stability pledge.
The government has committed €200 million to protect consumers from surging energy prices.
Enemalta has continued to sell electricity to consumers at 2014 prices, even though its costs to provide that same energy for sale to the domestic market have recently gone through the roof.
Dalli declined to say how much money is being pumped into Enemalta monthly.
“The money going to Enemalta is ensuring that consumers are not faced with price rises. The assistance being given (to Enemalta) is being done for consumers, so they can benefit from stable prices, even though international prices are volatile,” Dalli said.
Questioned about the viability of pumping money into Enemalta monthly, Dalli said the government had taken a “conscious decision” to help consumers by maintaining price stability.
The energy minister said S&P had given a positive long-term outlook on Enemalta. This outlook is, however, dependent on the government’s continued support for Enemalta.
The credit rating agency said its B+ rating of Enemalta continues to be underpinned by the “extraordinary support” it is receiving from the government.
“Our credit rating analysis on Enemalta incorporates our opinion of a high likelihood that the government of Malta would provide timely and sufficient extraordinary support to the company in the event of financial distress,” S&P said.
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