PN Slams ‘Unfair’ Gas Deal: Taxpayers to Foot Market Price Bill

PN Slams ‘Unfair’ Gas Deal: Taxpayers to Foot Market Price Bill

Standing outside the iconic Grandmaster’s Palace in Valletta, Opposition Leader Bernard Grech today slammed the government’s decision to have taxpayers bear the full cost of the Delimara power station’s gas supply. The Nationalist Party (PN) leader argued that this move is unfair and will ultimately lead to higher electricity bills for consumers.

Government’s Stance: Market Rates are ‘Fair and Transparent’

The government maintains that charging market rates for the gas supplied to the Delimara power station is a fair and transparent process. Energy Minister Michael Farrugia stated that the previous arrangement, where the government absorbed some of the costs, was not sustainable in the long run. He added that the new system will ensure that the power station’s operations are self-sustaining.

PN: A Hidden Tax Increase

Grech, speaking to reporters outside the historic palace, contended that the government’s decision amounts to a hidden tax increase. He argued that the PN had always advocated for a balanced approach, where the government would share some of the costs to protect consumers from market fluctuations. Grech also questioned the government’s decision to award the gas supply contract to a single supplier, stating that this could lead to a lack of competition and higher prices.

When asked about the PN’s alternative plan, Grech said that his party would explore all options to ensure that consumers are protected from excessive price increases. He hinted that the PN might propose a system where the government would absorb a portion of the costs during peak demand periods, when gas prices are highest.

In the meantime, consumers are advised to keep an eye on their electricity bills. While the government insists that the new system will not lead to significant price increases, some experts have warned that market fluctuations could result in higher bills, especially during peak demand periods.