€1.4bn in state aid for power station company

A total of €1.4 billion in state aid will be paid throughout the 18-year period of the government contract with the power station consortium Electrogas, according to the European Commission. The information of the amount emerges from the European Commission's official journal. Commission documents published last week show that Electrogas will get paid €77.56 million a year by the government. The overall budget for the state aid will amount to €1.4 billion, they show. This means Electrogas will recoup the cost of the €450 million power station in under six years. The aid will be paid through the long-term power purchase and gas supply agreements agreed with Electrogas. Brussels said the state aid took the form of payments that provided an economic advantage to Electrogas as they ensured a certain rate of return and a steady revenue stream. It said the rate of return for Electrogas was in line with similar projects and the company would not be overcompensated for the services provided. Opposition leader Simon Busuttil tore up sections of the contracts during a parliamentary debate two weeks ago. The state aid for the new gas-fired power station was approved by the European...