The government has taken to compensating Enemalta for its financial losses on a monthly losses due to a plan to keep electricity tariffs stable despite skyrocketing costs.
Following a report issued by credit rating agency S&P, Enemalta’s losses were fully covered by the government in 2021. This is set to continue this year, with the government committing €200 million to protect consumers from rising energy prices.
Enemalta continued to sell electricity to consumers at 2014 prices, despite its costs to provide the same energy for sale to the domestic market having soared considerably.
S&P stated that prices for energy imported via the inter-connector, which represents 25-30% of Enemalta’s requirements, increased by 154%. This means it rose from an average of €58.09/mWh in 2020 to €148.02.mWh in 2021.
The company stated that this was necessary because the ‘regulatory framework in Malta does not automatically protect the company from the rise in commodity prices no from decline in consumption volumes and also as it is the Maltese government’s policy to keep prices stable.’
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