Taking to Facebook, former Prime Minister Joseph Muscat went on to give his 5c about hedging and the role of power-stations in Malta.
Muscat said that in the time period when Malta was making the transition from heavy fuel oil to gas, the Nationalist Party came out against the building of power station despite the environmental, economic and health benefits.
‘They used to say that we did not need it and that we could do well with just the inter-connector’ said Muscat. ‘The economy grew so much in the past few years that not only did we not need a new power station, but we have already practically reached its full capacity.’
Muscat pointed out that some claimed that we would save up to €20 million per year. This was an incorrect figure, said the former Labour Party leader, as whoever calculated it did not take into consideration capital cost.
Referring to the PN, Muscat said that they then went on to say that through the hedging deal, through which the price of gas from Azerbaijan was fixated for 5 years, we were losing money.
In these last few months, he said, those who were critiquing have seemingly lost their tongues and no longer criticise the policy of energy mix. ‘I wonder why’ he rhetorically asked.
Muscat said that the response is simple should one do the calculation which everyone seemingly forgot to do. ‘If one simply compares all that the country paid in the past 5 years due to the hedging deal with that which the Maltese were being asked to pay through the inter-connecter alone, we would see that we managed to save €125 million. These are taxes and burdens lifted off families and businesses.’
Muscat said that the decision to commit to hedging to ensure stability, against the advise of those who ‘wrecked the country with high costs’, left a result. This is because bills decreased and were the lowest in Europe.
‘This is why it is easy to understand why some lost their tongues over the topic of energy.’
#MaltaDaily