Updated | Despite minister's promises, EU citizens continue to pay higher domestic utility rates

A group of tenants who live in rented properties are demanding that ARMS Ltd allows them to register for residential water and electricity rates.

“We were told that this was going to be sorted out by the end of January and it better be. If it isn’t, I plan to take it to the EU. I refuse to allow any infringements to be closed until this has been resolved,” said Patricia Graham, spokesperson for the Up in Arms campaign.

There are currently two different sets of tariffs: a ‘residential’ tariff and a ‘domestic’ one, with the latter being 30% higher than the former. Residential rates are intended for people living in a property which is their primary home, while domestic rates are intended for people’s second home and for non-residents.

Last June, then energy minister Konrad Mizzi had announced that the issue was resolved, and that tenants of rental properties would be able to benefit from residential rates without their landlord’s consent. Later on in November, the European Commission moved to close infringement proceedings against Malta after the member state moved to streamline its application process.

Despite this, when Graham attempted to apply for the residential rates, she was informed by ARMS that this could not be done because of technical difficulties with the software used by the billing agency.

“We really hoped that we could get the people there today registered but when we asked to speak to the manager we were again told that we couldn’t register because of technical difficulties. I can’t understand what sort of technical difficulty takes 7 months to resolve,” she said.

“Nobody likes going to the press but I have no other option. If someone tells me they are going to do something I expect them to do it. When you calculate the difference, these people are paying the equivalent of another rent on their properties,” said Graham.

The number of residents living in a property affects the way in which bills are calculated and more than one person living in apartment registered as having zero tenants will lead to higher bills.

“Most of the properties I have dealt with are registered on zero residents because the landlords have refused to inform ARMS that tenants are living there. We are simply arguing that the second a landlord puts tenants in one of his properties, ARMS should be informed immediately,” she said.

Graham said that she could not understand why the government is dragging its feet on what seems to be a relative non-issue.

“My problem with all of this is that these different departments clearly don’t speak to each other. Everyone just thinks it’s someone else’s job but if you don’t tell people to do something it won’t be done. If there is no conversation between these entities nothing is going to happen,” she said.

Commitment was for 'beginning of 2017', minister replies

Questioned by MaltaToday, a spokesperson for the OPM ministry said that the commitment with the tenants and also with the Commission was for the new system to be in place in the beginning of 2017, and that the government had stated that the system would be in place after a number of months. 

“At present, tenants may apply for residential rates for their primary residence by having utility accounts in their names, or by obtaining the account holder’s consent to the change in tariff. Following government and shareholder instructions, in order to simplify procedures, ARMS Ltd is currently finalising the implementation of administrative and technical changes necessary to allow tenants to apply for residential rates for electricity consumed in their primary residence, without requiring prior consent of the current account holder,” a spokesperson for OPM Minister Konrad Mizzi said.

He added that once the final testing phase was completed, ARMS Ltd would be able to offer tenants a new application process. 

“The above change in procedure to simplify access to residential tariffs by EU citizens, follows other measures taken by Government since 2013, to address instances of alleged discrimination against EU citizens.   The implementation of these measures also led the Commission Services in November 2016, to formally close the Infringement Procedure that it had opened in September 2012.”