Finance Minister Tonio Fenech revealed at a press conference this afternoon, that if one had to take MLP’s proposal and calculate expected fees energy bills would have to increase by 5%.
“Taking into account the energy mix proposed by MLP and working from the premise that the Power Station MLP proposed in its energy plan has already been built, with today’s prices, tariffs would have to be increased by 5%,” the Finance Minister said.
He continued, “with the energy mix (New Delimara Gas Plant for 40% of the demand, Delimara extension working on Gas for 40% of the demand and the interconnector for the remaining 20%), the cost of generation would be the following:
New Delimara Gas plant – 10c7
Delimara extensions working with – 11c7
Interconnector – 9c3
“This would mean the cost of electricity in Malta would be that of 10c8 per unit, but that doesn’t include factors such as the excise duty on the electricity which would increase the price to 12c5.
“Enemalta then has to include other costs on this price per unit, costs such as operation costs, compensation for street lighting and return on capital employed.With all these in mind, the cost would increase to 19c2, meaning a 5% increase on today’s cost of energy, Tonio Fenech concluded.