Issue link: https://maltatoday.uberflip.com/i/1479276
6 maltatoday | SUNDAY • 18 SEPTEMBER 2022 NEWS ADPD – The Green Party yes- terday said that a current €1 million daily fuel and electricity subsidies were not sustainable. During a press conference in Marsa on Saturday morning, party Chairperson Carmel Ca- copardo said that whilst help- ing those in need was a priority, it had to be done sustainably in everyone's long-term interest. Cacopardo said limiting the fuel and electricity subsidies would ensure that more funds are available for those areas of society and of the economy that really need them. He in- sisted that subsidies could be reduced in an intelligent man- ner which could in turn lead to benefits on other sectors. "For example, reducing the subsidies on petrol and diesel would mean less cars on the road and encourage a shift to public transport which will be offered free of charge from next month. To this end, it might al- so push for an improvement in the services' reliability and effi- ciency." Cacopardo said that the mon- ey spent on subsidies could be better invested in energy effi- ciency and renewable energy programmes. He argued that more renewable energy should be generated through better use of public buildings whilst encouraging more private us- ers to do the same. "Improving the distribution system could also assist in reducing the im- pact of the in-creased cost of energy on the Maltese taxpay- er." ADPD General Secretary Ralph Cassar said that despite the Prime Minister's declara- tion that it was not easy to limit subsidies being granted to the wealthy and the wasteful, it was imperative that measures were taken instantly to shift to a tar- geted assistance to those most in need. "The role of politicians in power is to ensure that the necessary decisions, fair ones, are taken at the earliest," Cas- sar said. He said that ensuring that subsidised fuel was not used by large seacraft was a step in the right direction. Cassar also argued that education, health- care, and the urgent transition to renewable and clean energy sources were examples which would benefit from enhanced and targeted investment. "The last thing this country needs is a reduction in invest- ment in that which could make an improvement in the lives of future generations – a de- cent education. Indeed, more not less is needed in this area," concluded Cassar. Daily €1 million spend on energy subsidies unsustainable, say Greens L-R: Brian Decelis, Ralph Cassar, and Carmel Cacopardo LUKE VELLA THE Nationalist Party said that the "secretive" security of supply agreement between the govern- ment and SOCAR meant that all the risks in the project were – up and until Electrogas found bank financing – entirely taken by the taxpayers, whilst the profits were reaped by others. During a press conference yesterday morning, PN MP and spokesperson for energy and enterprise Mark Anthony Sammut condemned the agree- ment which, two weeks ago, was revealed in a Freedom of Information request published by the Daphne Caruana Gali- zia Foundation. The security of supply agreement was signed by former Energy Minister Konrad Mizzi in 2015. "The Energy Minister's (Mir- iam Dalli) comments that the agreement was terminated and never utilised are incorrect, as without it SOCAR would have never sold electricity to Elec- trogas," Sammut claimed yes- terday. He said that government lied in Parliament when it said that the security of supply agree- ment was being discussed with the European Commission. The agreement published by the Daphne Foundation formed part of government's temporary guarantees given to the Electrogas consortium, pending the European Com- mission's analysis of the secu- rity of supply agreement and the deals entered into between Enemalta and Electrogas. This side agreement, includ- ing government's multi-mil- lion-euro financial guarantee, enabled Electrogas to secure bank financing for its project, while the European Commis- sion analysed the Malta deal to determine whether it breached state aid rules. "The agreement was not dis- cussed with the Commis- sion but hidden from it. Leaked emails show that they were worried that if the agreement went public, the European Commission would have realised it would have breached the rules," Sammut said. Sammut also remarked how a PN parliamenta- ry motion to publish all the agreements related to the Electrogas power station was pushed back by government, with all Labour MPs voting in fa- vour of dropping the mo- tion. "The Labour Party and Prime Minister Robert Abela knew of all the side-agreements, the same way they knew of side-agreements in the Sadeen and hospitals concession deals," Sammut said. He questioned why Labour was still "protecting" and re- fusing to condemn former minister Konrad Mizzi, two years after he was sacked from the party. "Labour has been hiding these details for 10 years and transparency in the sector is much need- ed. We need to know how the energy subsi- dies are being spent. How much is actual- ly going towards the consumer and how much is being used to subsidise the profits of Shanghai Electric and Electrogas?" asked Sammut. The chair of the Pub- lic Accounts Commit- tee, MP Darren Carbott, said a scandal that started nine years ago was still being discussed, and that the country was "stuck" because of this. The PAC is probing the find- ings of the National Audit Office's investigation on the Electrogas contract, concluded in 2018. Mizzi had already tes- tified at length in the previous legislature. "This secret agreement meant that the government decided that a company was needed for the electricity supply and it acted as a guarantee in case the project failed," Carabott said. He said that the NAO report on the Electrogas tender con- cluded that there were serious doubts on how it was awarded, condemning the due diligence that was carried out. "Despite Electrogas's finan- cial issues, the contract was still awarded. Why were the tendering process rules broken to accommodate Electrogas? Who advised the government to award them the contract," Carabott asked. "The contract should be terminated." 'Secret' SOCAR guarantee placed risk on taxpayers – PN Government signed a multi- million euro financial guarantee to enable Electrogas to secure bank financing for its power station project at taxpayers' risk, PN says Former energy minister Konrad Mizzi