PD: utility bill frequency pushing up household expenditure

The Democratic Party has said that the “arbitrary manner” in which the bill management service ARMS is changing bill periods in order to increase the maximum rate they can charge to consumers, has lead to a “perverse situation” where certain families are charged the highest tariffs in peak months, leaving their allowable band of cheaper tariffs unutilised in other months.

“PD notes that, according to Eurostat, the average residential tariffs did not decrease by 25%, as Enemalta had projected at the time of application for the tariff revision, but only by 15.6%,” it highlighted, adding that it had been receiving several complaints concerning bill periods.

“Based on the latest available Eurostat statistics, Malta has the highest average cost of electricity for households in Europe. This suggests that the current tariffs are providing Enemalta with greater revenues and greater return than allowed by the Regulator, and which clearly run contrary to the tariffs approved by the Malta Resources Authority in 2014, requiring that the tariffs are to be applied on a ‘cumulative consumption per annum basis’,” it said.

Referring to Enemalta’s statement that the Enemalta Act allows the company to bill at a pro-rata basis, PD said that there “was a clear difference between utilising this clause to facilitate timely bills, and purposefully altering billing periods in order to charge tariffs at a higher rate than allowed when reconciling bills on a cumulative consumption per annum basis as dictated by law”.

It pointed out that the Malta Competition and Consumer Affairs Authority, which should protect consumer rights, has been silent on the issue.

The Regulator for Energy and Water Services was also not fulfilling its role of promoting the interests of consumers and other users in Malta, particularly from vulnerable prices, it said.

“The role of strong and independent regulators is crucial for protecting consumers from abuse by monopolies, as in the case of Enemalta. PD emphasises the urgent need of independence, as both operator and regulator fall under the same Ministry, an anomaly introduced in 2013 by Minister Konrad Mizzi.  So far it is very noticeable that regulators are protecting a hidden agenda and consumer rights are in jeopardy,” the party stressed.

“PD welcomes Minister Joe Mizzi’s call for an investigation,” it noted.