Retroactive WSC charge

I refer to the letter by Mr T.A. Sammut (The Sunday Times, December 29) regarding the retroactive charge for water service installation.

The tariffs package applicable when Mr Sammut applied for the said service did say that the installation was 'free' but the tariff also said that meter rent was Lm24 per annum and the water consumption was to be charged at 11c per m3 for the first 4.5 m3 per person per 121 days for the next 4.5 m3 and Lm1.10 for all consumption over 9m3.

Subsequently the whole tariff structure was retroactively altered. The one-time service charge was more than balanced by the reduction of the water meter rent to Lm12 per annum and the reduction in the water consumption rate to 16c5 per m3 for the first 11m3 per person per 121 days and Lm1.10 for all consumption over 11m3. In fact, like every other consumer Mr Sammut has been paying his water bills as per the lower rates and not as per the higher rates that he implicitly accepted when he applied for the service.

It is not usual for tariffs to be revised retroactively. However, the electricity and water tariff packages announced in December 1998 and applied retroactively were advantageous to the consumers when considered in their totality.

In other words, if the revoked tariff package - that included the free water service connection - were to be applied to all Mr Sammut's bills for water consumption and meter rents since the service was installed, he would end up paying much more than the Lm35 charge that he has been invoiced.