Government will buy Gasan/Tumas power station for €450 million if European Commission does not approve power-purchase contract

The government will use €450 million of taxpayers’ money to buy the new power station from the Gasan/Tumas consortium if the European Commission does not allow the government to go ahead with its commitment to buy all the electric power they produce, at a price which favours them, under a contract which ties the government for 18 years.

The European Commission is still reviewing the matter.

So it’s a win-win situation for Electrogas Ltd, which will either have the security of selling all the electricity it produces at a large profit, or receive €450 million and move on to other things. And it’s a lose-lose situation for the government and people of Malta, who will shell out €450 million to be saddled with a power station that’s not needed.

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