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Malta Will Keep Electricity Bills Stable, Robert Abela Pledges As Gas Prices Soar Amid Russian Invasion

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With global gas and oil prices soaring in the wake of Russia’s invasion of Ukraine, Prime Minister Robert Abela was adamant that Maltese households won’t feel the pinch of higher electricity bills.

“Despite these developments taking place far away from our shores, they can have an impact particularly as sanctions can result in raw materials becoming more expensive,” Abela said during an interview on ONE Radio this afternoon.

“In fact, the first global impact we saw [following the invasion of Ukraine] was an increase in the global price of oil and gas.”

“The EU is making arrangements to procure gas from different sources but Malta already has a deal for the provision of LNG that will guarantee a stable price.”

“I will honour this commitment to keep energy prices stable, which shows how important it is to be focused and plan ahead.”

Russian President Vladimir Putin

Russian President Vladimir Putin

Shortly after Russia’s invasion of Ukraine, the price of LNG spiked by almost 19% to €105.6 per megawatt-hour on the TTF exchange in the Netherlands. Brent crude increased by over 7% to above $104 a barrel, the highest it has been in over seven years. 

Oil and gas supplies were already tight before this crisis but the situation has now been exacerbated, with doubts as to whether Russia will continue supplying Europe with gas or whether it will turn off the switch in retaliation for sanctions.

Malta is currently shielded from huge global surges in gas prices due to a hedging agreement that power station operators Electrogas had signed with Azeri state-owned company Socar in 2015, which sees it purchase LNG at a fixed rate of €9.40 ($11.50) per unit. 

However, this deal is set to expire next month, prompting the government to put aside millions of public funds to cushion the blow and prevent it from having to increase electricity bills.  

READ NEXT: Parking Fines May Become A Thing Of The Past In Malta, Grech Proposes

Tim is interested in the rapid evolution of human society and is passionate about justice, human rights and cutting-edge political debates. You can follow him on Instagram or Twitter/X at @timdiacono or reach out to him at [email protected]

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