The government said that an article published in the Times of Malta today on the state aid to Electrogas Malta Ltd “is wrong, and factually incorrect, on a number of fronts”.

In a statement issued by No Portfolio Minister Konrad Mizzi, the government said that it will not pay any money to Electrogas Malta Ltd. It is to be clarified that the “state aid” concept should not be interpreted in the sense that the company will be receiving any subsidy in the classical sense, neither from Government, nor from Enemalta plc.

“The only money that will be paid to Electrogas is that for the provision of power and gas by Enemalta. This is as per contractual agreements. The agreements in question are between Enemalta plc and Electrogas Malta Ltd. 

“The implication that Electrogas will be given an ‘advantage’ of €1.4 billion is definitely misleading.  In fact, having made its financial and economic analysis, the European Commission concluded that the rate of return to be made by Electrogas Malta Ltd is in line with similar investments, and that there would be no overcompensation. This excludes the possibility of recovering investment in the six year period indicated in the article. The Investment Rate of Return (IRR) would typically correspond to a payback which is at least twice as long as that claimed by the article in question.”