Update 2- Study shows tariffs would rise 5% under Labour - Fenech

Finance Minister Tonio Fenech said this afternoon that an exercise carried out by independent advisers KPMG on the basis of the information given by the Labour Party in its energy plan made clear that electricity tariffs would actually rise by 5%, rather than drop under Labour. See report at http://www.enemalta.com.mt/enemaltastorage/images/files/miscellaneous/kpmg%20presentation.pdf Mr Fenech said that the proposals made by Labour would not lead to a 25% reduction in tariffs. Indeed, Labour's own consultants, Kema, showed that the cheapest option was not to ship gas by tankers but to set up a gas pipeline from Sicily. Yet Labour had opted to transport gas on ships. Furthermore Labour had proposed to build a power station which Malta did not need. Labour's own costings, he said, were €200 million off the mark and would actually rise to over €600. This would lead to tariffs rising by 5%. Furthermore one still had to see what 10-year gas price agreement Labour could come up with, since prices fluctuated. Mr Fenech said the timelines laid down in the Labour plan also could not be met. He said KPMG had been commissioned by Enemalta to draw up their report and it would be published...