The majority of Maltese families will get a reduction in utility bills averaging around 30%, Energy Minister Konrad Mizzi said this afternoon.

Dr Mizzi said that the Labour Party had promised a 25% reduction but was not only delivering on its promise, but even going further.

The tariff for the first 2,000 units will be reduced by 35%. The tariff on usage of between 2,000 and 6,000 units will be reduced by 25% and the tariff on consumption of  between 6,000 and 10,000 units will be reduced by 15%. Dr Mizzi said that utility tariffs for a family of four will be reduced by an average of 27% and almost 90% of families will have their bills reduced by an average of 30%. These prices will remain in force until 2020 and these have already been discussed with Electrogas, the consortium that will build and run the new gas fired power station.

Enemalta valuation will be calculated on future potential

During the press conference, Dr Mizzi outlined the government’s plans on energy and water conservation as presented in next year’s budget. He said that the government also wanted to ensure an adequate electrical supply to reduce power cuts and fuel prices would be kept as stable as possible.

The project to build a new power plant to run on gas is on track. The final Environmental Impact Assessment will be up for public consultation in the coming days. Dr Mizzi said that 15 core studies on the environmental impact of the project have been completed and will be made public in the final EIA. The project would lead to a 50% reduction in emissions and a 90% reduction in particulate matter.

The China-Enemalta deal will lead to a much needed cash injection into the power corporation and the government “will save” the utility company, Dr Mizzi insisted. Over the past few months Enemalta has been paying excise tax owed for last year, and the financial situation would improve with the Chinese investment.

Asked on the corporation’s valuation, Dr Mizzi said that this will be calculated on Enemalta’s future potential and not on its current situation. By early next year the government will know exactly what the corporation is worth.

Stable fuel prices

The government will also be introducing a policy for stable fuel prices by the end of December. Despite a 2 cent increase in excise tax on fuels, the price of diesel will remain stable for six months and, so far, the price of petrol will only increase by one cent in January. Dr Mizzi said that it was customary for excise tax to increase by two cents every year but the government will not let families shoulder this burden and prices will remain the same for now. The government is working to keep prices stable “three months at a time” but no guarantee can be given on prices beyond next March.

Revision of solar, water plans

MEPA and the government are also in the process of revising the solar policy and a scheme to allow people who live in flats to install solar panels will also be launched. This, however, will require the participation of the private sector.

A pilot project for the installation of ‘intelligent’ street lighting will be introduced in Gozo at the beginning of the new year and this will eventually be extended to Malta on a district basis. This will also require public private partnerships. Public buildings will also be reducing their electricity usage and a pilot project to reduce consumption in schools will be launched in Siggiewi.

The government will also be drafting a new National Water Plan. Water wells and reservoirs will be restored and a project to maximize efficiency at the reverse osmosis plants will be launched.  Dr Mizzi admitted that, as of yet, not charges would be incurred by those who use water from boreholes for commercial or industrial use, but said that the issue will be addressed in the Plan, which will be finalized in around 18 months time.

Water that is normally wasted will be treated to be used in agriculture or to replenish the water table by means of a new project referred to as ‘new water.’

Government ‘not happy’ with ARMS

Dr Mizzi said that the government is still not happy with the situation at ARMS. “There still exists a situation where more than 60,000 households have not received a bill for more than a year and a half and there are 30,000 cases of bills being returned because they were posted to the wrong address.” The utility billing company will also be opening two more regional offices, one in the north and one in the south of the country.