Opposition leader Simon Busuttil today questioned why a new power station is needed if the government has already reduced energy tariffs.

“Is there a need for this power station. If the Prime Minister needed it to reduce tariffs, the tariffs have already been reduced,” Dr Busuttil said during a telephone interview.

Dr Busuttil also hit out at the €360 million loan guarantee given by the government to ElectroGas, the private consortium tasked with building the new gas-fired power station.

He said the Prime Minister gave this guarantee purely to save his own skin, as he would have to resign if the government failed to deliver on its promise to build a new power station.

It is “unprecedented” that the government is making good for the finances of a private entity, especially for such a large amount, Dr Busuttil said.

“The new power station as not built in two years as promised.  A private investor had to be found. The element of a private investment is gone, it is the government that is making good for this project. We carry the burden and the private sector reaps the profits.

“Without this guarantee the banks would not have lent money for the project to go ahead. With this guarantee the project would have fallen through, leading to the Prime Minister’s resignation.

“This is only being done so that Joseph Muscat can save his own skin.”

It is not normal having the government making good for a private business, Dr Busuttil continued, questioning whether the power station project is still a private endeavour.

Dr Busuttil said the Maltese population is being roped into this guarantee, with a burden of €2,500 on each family.

He also deplored the lack of transparency in the matter, saying the political conclusion is that the Prime Minister’s “irresponsibility” will stay with us for years to come.

He reminded that the government is obliged to buy energy from the private consortium for 18 years.

Dr Busuttil promised that the Opposition will seek to defend the national interest and Maltese families.

The Auditor General has already been asked to investigate the whole process behind the new power station, and the PN will also seek to protect Malta’s interests by using the EU institutions.

He again emphasised that energy tariffs did not come down because the Prime Minister built a new power station, but thanks to the interconnector and BWSC plants, two projects spearheaded by the previous administration.