The Malta Independent 25 April 2024, Thursday
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People are losing out on their full eco-energy tax reduction – PN spokesman Tonio Fenech

Kevin Schembri Orland Wednesday, 22 October 2014, 10:57 Last update: about 11 years ago

PN MP Tonio Fenech told The Malta Independent that by changing the timeframes for the issuing of energy bills, people are losing out on their eco-tax reduction.

"Instead of issuing electricity bills every six months, the government changed it to a bi-monthly system," he said, "without introducing safeguards that would ensure the benefits received by law regarding the eco-reduction discount".

Mr Fenech gave an example to backup his argument. "Many people spend more money during Summer than they do in Winter, due to air conditioning, while some spend more during Winter on heating. If, during January and February, you use more electricity due to heating and much less during the rest of the year, you would not benefit from eco-reduction for the months of January and February, but would benefit for the rest of the year. By law, eco-reduction is worked on a yearly basis and the person in question, should not have lost the eco-reduction for those two months".

Mr Fenech also turned to the issue of dependency. During Monday's  parliamentary debate the interconnector was discussed. Energy Minister Konrad Mizzi said that should the interconnector be damaged, Malta would be in trouble without alternatives.

Mr Fenech said:  "Today we still don't have the interconnector as well as the ElectroGas plant. We have backups, including the Delimara 1 and the Marsa station in reserve, according to the government. Therefore backup already exists so the government does not need to build this new plant".

We should not bind ourselves

He explained that people use less energy at night, "thus making the interconnector the best option. This is why it does not make sense to bind ourselves with ElectroGas to buy energy at night for a fixed rate when we can get it cheaper as we would shutdown our stations".

When challenged with previous electoral promises by the PN to close the Marsa station, Mr Fenech argued that the opposition has always said the plant can only close once the interconnector is active. "In fact, right now it's active, however the BWSC is and when needed, parts of Delimara are also used. So then why not close the Marsa station, one might ask? If something happens, they can switch it on temporarily. Why is the government now saying it will be completely decommissioned? Because the interconnector is now nearing completion". Regarding the changeover of the BWSC plant to diesel from heavy fuel oil, the MP said that "only a switch is needed to change-over. So then why not switch," he asked. "Because the government needs money to fund its electric bill reductions and heavy fuel oil is cheaper than diesel".

Fixed price for 5 years not 10

 "Another promise regards the fixed energy price for ten years, however in reality this is for five years. In reality, Enemalta's debt is getting worse," Mr Fenech argued.

"I have one question, where is the government getting the money to pay for the reduction in energy bills? Originally, ElectroGas was supposed to give €30 million to the government which would pay for this reduction. The same goes for the €100 million from Shanghai Electric. Since this is not happening, the money can only come from two places, either those energy factors already in place when they entered government are successful, or there are external factors".

Mr Fenech referred to the allegedly high petrol and diesel prices, arguing that they should be 22c and 30c lower than what they are.

 

 

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