Last Updated 14 | 01 | 2013 at 18:53


UPDATED: Joseph Muscat - KPMG report erroneous

Article By:
Kevin Schembri Orland

Labour Leader Joseph Muscat, speaking at Ta’ Giorni housing estate, has said that the KPMG report which said the PL's energy plan will raise taxes by 5% is erroneous due to the auditors being given the wrong figures.

Dr Muscat argued that KPMG were given numbers by Enemalta and did not undertake any research of their own. He mentioned that the auditors added on to the 9c6 and compared it to Enemalta’s raw energy generation cost.

Labour Party spokesman for finance Karmenu Vella, said that there is panic in PN camp and that today's argument shows that Minister Tonio Fenech does not know much about the energy sector.

"Minister Fenech insists that there is enough capacity in electricity generation and what we are proposing isn’t needed. This proves that he does not know what we are talking about. We want to change the capacity we currently use to one that increases efficiency and one that is cleaner", Karmenu Vella announced. Energy prices in Malta are the third highest in Europe and PL claims that the proposals the party has put forward will reduce prices.

Labour candidate Konrad Mizzi explained that there were a number of possibilities regarding the ships used to transport gas. He stated that DNV Kema proposed the use of medium-sized vessels, tankers and large tankers that berth in a different area and transfer the gas from their berth, adding that Labour did infact consider the most expensive course for their proposal. In addition he explained that the KPMG study was drawn up in a single day, arguing that KPMG used 2013 projections whilst the PL used actual Enemalta figures in their proposal.

Konrad Mizzi announced that, "We stand by our figures and we stand by our technical accountants. We are also confident that the Minister changed the figures". The people of Marsaxlokk were also consulted through 'vox pops' and what interests them the most is clean air, he told the press conference. "KPMG had included Enamalta profits twice because they did not know that the PL figures included the return on capital employed 8.4%. In addition costs would be €300 million not €670 million as the PN have said, which would corrupt KPMG's findings".

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