Friday, February 15, 2019

Letter to the Ombudsman regarding Utility Bills

To the Ombudsman of Malta
Dear Ombudsman,


In the past years and especially months, the situation with water and electricity billing in Malta has raised concerns about unfair billing practices, abuse of dominance, state-aid, discrimination among consumers and business, and more recently links with offshore business. Individual queries to State bodies such as ARMS, Enemalta, Water Services Corporation, the Malta Competition and Consumer Affairs Authority, the Competitions Officer, the Consumers’ Office, and the Regulator for Energy and Water Services are sending customers and journalists in circles. I am therefore asking you to provide answers to the following queries related to the matter:



Billing:
Is it legal for ARMS ltd to reduce the annual quotas foreseen in the legal notice by bulking prior period consumption into shorter billing periods or by rationing the annual quota into discreet short-period quantities?


Is the ARMS billing procedure clear and understandable to Maltese households?
How many billing queries have ARMS ltd received annually since operation?

Threats of cut off:
Do customers have the right to contest a bill without paying interest or risk of cut-off?
How are they to do this?

Loans, interest rates and ad hoc fees:
At what rate is ARMS entitled to charge interest on loan facilities?
Is Arms entitled to create and impose ad hoc fees that are not foreseen in the law (e.g. 13% to revise a bulking error)

Discrimination:
Is ARMS entitled to discriminate between residents on the basis of the type of accommodation they live in (Domestic vs Resident)?
Why do non-residents pay less per unit at higher consumption while residents pay more per unit?
Can ARMS cross-subsidise one group of users by another? 
Is it acceptable that residents are put on different billing periods (2 month vs 6 month) when these result in material differences to the rate applicable?

Ownership and regulation:


Who do Enemalta, the Water Services Corporation belong to?
Who does Arms ltd belong to?
Which entity regulates EneMalta, WSC and ARMS?

Looking forward to your reply,
Dr Michael Briguglio