EU expats ‘entitled to a refund’ for discriminatory pricing – Commission

The Maltese government has assured the European Commission that claims of EU citizens who suffered losses due to the discriminatory pricing of utility tariffs will be entitled to a refund.

The news was communicated to a representative of the Up in Arms class action group by a spokesperson for the European Commission for Justice.

Late last year, EU residents living in Malta were informed by Energy Minister Konrad Mizzi that ARMS Ltd would be accepting and processing the new e-residence cards and the 'A' ID card in order to secure services for water and electricity.

This change in procedure meant that the expats could now apply for residential utility rates rather than the higher and discriminatory domestic rates. Domestic tariffs, unit per unit, are roughly 30% higher than residential tariffs.

The non-Maltese EU citizens are suing a number of state entities including ARMS Ltd asking the court to order a refund of any excess payments. Last year, Up in Arms class action group filed a Constitutional case arguing that discriminatory pricing violates European laws.

Despite the recent change in ARMS Ltd's procedure, the court last week decided to proceed with the expats' case.

It now transpires that the government has already reassured the European Commission that EU citizens who have been unfairly discriminated against will be entitled to a refund.

The expats' battle has long been ongoing, also seeking assistance within the European Commission. On 1 October 2012, the Commissioner had issued a letter of formal notice to the government. The Commission had not been satisfied with government's reply and planned to propose the adoption of a reasoned opinion to the College of Commissioners.

On Friday 10 January the Maltese government and representatives of ARMS Ltd informed the Commission about the change of policy and that EU citizens could submit the 'change in number of persons declaration' together with a form of identification which include national identity cards and national passports.

"I am glad to inform you that the Maltese government also assured the Commission that claims of EU citizens who suffered losses would be analysed on a case by case basis by ARMS Ltd. and, where an EU citizen had submitted a 'change in number of persons declaration' and had been unduly denied the application of reduced water and electricity rates he/she shall be entitled to a refund," the expats were informed by a Commission spokesperson.

"We consider this to be an important step forward in solving the problem raised in your complaint."

The spokesperson added that the Commission would continue monitoring and ensure "that Malta abides to its promises".

The EU expats' problems however do not end here. Even though they can now start paying residential and benefit from eco reduction, some of them have to have their applications signed by the account holder - the landlord.

As an ARMS Ltd representative informed inquiring non-Maltese nationals, the billing agency required the authorisation of the account holder to change the account scheme from domestic to residential.

It transpires that in several cases landlords are refusing to authorise the change in accounts. It also appears that this problem is being faced by a number of Maltese nationals living in rented properties.

The energy minister told MaltaToday that ARMS Ltd was also ready to accept a letter by the tenant confirming that the residents were living in the particular rented property.

"We are currently looking at the different ways to improve the situation and to ensure proper fairness," Mizzi said.