Penny wise and pound foolish
This comment came in last night:
It’s 2025, Joseph Muscat’s choice of operator for the new power station has been charging abnormally low tariffs patiently for 10 years, the price of gas is three times what it was in 2015 and in terms of Joseph Muscat’s 25-year energy supply agreement signed in 2013, the tariffs applying as from the eleventh year are about to be negotiated.
At that point, Enemalta’s bargaining position is down to zero and the operator needs not only to adjust 2025 tariffs to the gas prices prevailing at the time but would be all out to recover any losses incurred in the first ten years of the contract.
The inevitable will happen and the tariffs would rocket twice over.
Essentially it will be “look here, we have for ten years lived up to your stupid choice of tariffs and now it is your turn to put up with our choice of tariffs for the next fifteen years whether you like it or not.”
And then God help us. And we’ll all be very pleased with ourselves and our choices in 2013 and that as Joseph Muscat tells us “Malta taghna lkoll”.
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Gaddafi’s children’s allowance.
http://www.maltatoday.com.mt/en/newsdetails/news/elections2013/survey-electoral-barometer-20130111
I see this and weep. I cannot believe that a majority of my compatriots are so easily led by the nose (or to put it bluntly, stupid in the real sense of the word).
2025, bend over Malta. Mintoff would be proud.
Joseph’s power ‘solution’ is simply a financial exercise using a new power station as an excuse. We taxpayers will be taking out a loan of €600 million over 25 years.
As anyone with a mortgage knows we will end up paying double – but we also have to pay profit – €1.2 billion.
In return we wil save, if lucky, €0.50 per day. In the meantime the opportunity to save a lot more with our own pipeline, not to mention the security it provides, goes out the window.
We are being asked to take invest in a financial instrument that will have a 25 year term for a 50 cent return – without any opportunity to see the contract and its conditions.
No thanks.
By that time Joseph would have done his 10 years in government and a new government would need to see how to keep prices to a reasonable level.
I have a suspicion that the 10 year period has been chosen to cover a potential re-election after which our dear leader wouldn’t be bothered.
Joseph would have spent his 10 years as Malta’s youngest prime minister and would be settled for life so why should he care?
Joseph will not spend 10 years as Prime Minister. With his pomposity he will piss off his Cabinet. With his immature policies he will not survive.