Updated: PL: Utility bills to decrease by 25%
A reduction of 25% of the current utility bills will kick off as of March 2014 if PL is entrusted with the helm of the country, PL Deputy Leader Louis Grech declared this morning at a much awaited press conference.
‘The beef was delivered’ at the PL Headquarters in Hamrun, during a press conference, entitled 'Affordable, reliable, clean energy for all’, where the PL Deputy Leader explained how families will benefit from a reduction of between 25% and 35% of their utility bills, which the same reduction of 25% being passed on to the commercial and industrial users in March 2015.
The proposal is based on a progressive structure where the more energy one uses or wastes the less reductions one benefits from. At the heart of the proposal lies a shift from heavy fuel oil to gas at the power stations and a public private partnership for the building of new generation facilities.
The actions taken to bring about the average reduction of 25% are not made of a single measure but also incorporate measures that will strengthen Enemalta Corporation, restore the corporation’s stability and safeguard jobs, Louis Grech said.
PL candidate Konrad Mizzi gave a presentation on the proposal and pledged that in the first five years of the PL leading the country, both the Marsa and the ‘old’ Delimara power stations will be closed down, including the dismantling of the chimney currently at the Delimara plant which is an eyesore on the village’s skyline.
The most efficient option requires the construction of a new plant costing €166 million together with the BWSC conversion to gas estimated at €68 million. The gas supply infrastructure with constant supply was estimated to cost €142 million. The preferred option for gas delivery is through Liquefied Natural Gas and a regasification terminal, through the delivery of gas by ships. The gas will be stored in tanks at Delimara, the PL candidate continued.
The cost of electricity generation will drop to 9c6 per unit for Enemalta which will in turn save €187 million per year. The private sector will be involved through Private-Public Partnerships for the new plant through a power purchase agreement with investors of the new power station. This will fix the price of energy for a 10 year period.
Water tariffs will be reduced by 5%.
PL Leader Joseph Muscat explained that "there are no hidden costs in this proposal, we have laid out everything before you". He added that the PL will be rolling out further schemes throughout the week.
"The mismanagement of Enemalta brought the company into bankruptcy. The government opted for heavy fuel oil, which is the dirtiest form of energy. We are proposing a change in direction," the PL concluded.
A consultant from Dutch firm Kema which the PL entrusted to study the proposal, was also present.