The Nationalist Party has presented a six-point plan to reduce energy prices, including petrol and diesel.

Addressing a news conference at the party headquarters, PN deputy leader David Agius insisted these reductions should be made given the drop in international oil and gas prices, and the exceptional circumstances which the coronavirus outbreak brought upon households and businesses. 

He noted that when Labour had made an issue of energy prices in 2010, the price of oil was $140 per barrel, while at present this is around $20. 

The news conference was also addressed by Opposition Whip Robert Cutajar and MP Edwin Vassallo. 

1. Utility tariffs

The PN reiterated its call for electricity rates to be halved. It noted that according to its calculations, with the current drop in oil and gas prices government is saving around €86 million - €14 million on oil and €72 million on gas. 

In 2018, Times of Malta had revealed that the Electrogas consortium behind Malta's gas-fired power station is bound to buy gas from Azeri company Socar at a fixed price of €9.40 per unit until April 2022. Enemalta is, in turn, contractually bound to buy €131.6 million worth of LNG from Electrogas every year. 

Last week, Finance Minister Edward Scicluna admitted that the government's hands were somewhat tied when it came to Enemalta. 

"It is not ours to say, OK, let’s lower this or increase that," Scicluna said.

2. Petrol and diesel

Government is in a position to cut prices by up to 30 cents per litre, the PN said.
Petrol prices are currently €1.41 a litre, with diesel selling for €1.28 a litre. 

The PN noted that Malta was the only EU member state where the price of fuel and diesel had not been reduced. In the rest of the EU, prices had fallen by an average of 10 cents per litre, the PN said. 

3. Eco-contribution

The current eco-contribution limit of 1,750 units per person year – which is the amount of units given free of charge – should be increased, as people are spending more time at home due to the coronavirus outbreak. 

4. Water

The free allocation of 33 cubic metres of water per person per year should be increased, as households are having to rely more on this resource to keep surfaces clean and wash their hands more regularly. 

5. Water and electricity meters

Rent charges on water and electricity metres should be subsidised, especially for businesses and self-employed firms which are currently closed.

6. Reform billing system

The PN is calling for a radical overhaul of the utility billing system by ARMS, saying the current system was resulting in consumers getting “robbed” by up to €600 or more, per year.  Former Prime Minister Joseph Muscat had promised to review the billing mechanism, the party noted.